stocks, at what ratio or point do you buy the stock and not a call option?
ks_condor
Posted 12/18/2025 09:47 (#11474717 - in reply to #11474544)
Subject: RE: stocks, at what ratio or point do you buy the stock and not a call option?


SC KS
a few thoughts.

1) check implied volatility so that you aren't paying a high premium for already expected priced in large price movements (HL is >80% so extremely high)
2) i start looking at ITM calls if a stock or ETF is trading over $50 (for larger stock blocks) as the capital requirements are much lower (just option premium) vs. having to tie up large amounts of capital in owning the underlying; it also caps loss which is a benefit. if volatility is high like in HL, you can always do a call spread to at least offset some of your volatility exposure.
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