You look at the news and see this company’s stock going down, but with the potential of going up in the future.
Step 1. Check its ANALYST RESEARCH reports and make sure is either a ‘HOLD’ or a ‘BUY’ only.
Step 2. Look at its OPTIONS from a year from now and pick the best suits your wallet.
Step 3. $2.35 * 100 = $235 plus $10 fees, will be the amount you will invest.
Step 4. The higher the amount the better, because with ‘TIME DECAY’ the option-shares will near zero cents a share and you can pocket the difference. You will ‘SEE-OPEN’ just ONE contract, each contract has 100 option-shares in it. When near expiration date of 1/18/19 price might be .05 cents a share, so do the math: $2.35 – $0.05 = $2.30 EACH OPTION-SHARE, and you only had ONE contract, so that’s like $230 USD in your pocket!