Explore Your Options by Jay Kaeppel
OUT-OF-THE-MONEY BUTTERFLY SPREADS
I want to trade some of the bigger name stocks. However, many of them are extremely expensive per share. I also looked at buying call options, but even those are quite expensive. Is there a way to use options to make it more affordable to trade these stocks?
Absolutely. Of course, there are tradeoffs. When you buy shares of stock, you get point-for-point movement, that is, if the stock goes up to $50 a share, you make $50 a share and vice versa ...