curl joe asked:


I see that a call for payx Jan 09 is around $4.40 at $50 strike - now if i bought one contract that would cost $440 right? also if i bought this planning to trade it later and not ever excersice it would i be fine with only the $440 or do i need enough $ in my account to cover the stock when it is exercised? im getting confused when someone says i need to have enough to cover my bets - i just wanna buy a Jan 09 call for $440 and sell it in 6 months - how much would i need to buy that?

thanks

NYInvestingMeetup posted video:

http://investing.meetup.com/21 - New York Investing meetup present author and advisor to the super rich,Jim Schlagheck, discussing which income producing investments are the best. Filmed at the March 12, 2008 meeting. The New York Investing meetup is a group of 1800 independent traders and investors. We provide unbiased stock investing education and analysis and we have our own blog, “The Helicopter Economics Investing Guide” at: http://nyinvestingmeetup.blogspot.com.

TJS asked:


It seems like it’s a credit spread that doesn’t change in value regardless od the stock’s move. Is it just like a interest free loan? Do you or have you ever actually used one?