I’d like to understand why one would buy an option below the current market price. Ie the stock is trading at $5.50 and I see I can buy a call option at $5.00 at a premium of .20 cents a share effectively paying 5.20 a share.
I’d like to understand why one would buy an option below the current market price. Ie the stock is trading at $5.50 and I see I can buy a call option at $5.00 at a premium of .20 cents a share effectively paying 5.20 a share.