Selecting the Most Beneficial Prepaid Calling CardIt radically, and if you had been to buy stock, 100 shares at $50 would cost you $5,000 total. By using options, you can control those self same 100 shares for just few $ 100. When the stock moves in your direction, your profits could be huge.
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If the stock trades between $75 and $75.41, you've made some money - also $75.41 you break probably. But like anything a market this trade isn't without probability. If the XLE trades between $75.42 and $76 you lose some your money. But get this. Since own the $76 call option, your losses are limited.