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0 pointscj5y ago0 comments

One thing to note is stock price dramatically impacts the price of options.

For example 1 option contract for Amazon (over $3k share price) can easily be $4,000. In comparison, you can buy 1 option for Apple ($400) contract for $200. After the stock split, option contracts will be 1/4 the current price.

Lower stock prices make the options market much more accessible to people investing less money (for better or worse).

0 comments

runako5y ago

Even more relevant for absolute dollar terms: standard options contracts are for 100 shares. So a single contract of AMZN can require $300k in cash to cover, depending on the brokerage.

j / k navigate · click thread line to collapse

0 pointscj5y ago0 comments

One thing to note is stock price dramatically impacts the price of options.

Lower stock prices make the options market much more accessible to people investing less money (for better or worse).

0 comments

runako5y ago

Even more relevant for absolute dollar terms: standard options contracts are for 100 shares. So a single contract of AMZN can require $300k in cash to cover, depending on the brokerage.

j / k navigate · click thread line to collapse