There may be something on this but i can't find it, so i need to ask.
What do you call this type of trade. Looking up some information on options and there is so many ways Long/short/bull long etc
What i am considering to gain some leverage on a blue chip stock
Say i see a company XYZ and its share price is say $60 per share. I think the price will increase, over the next month or so.
If i wanted to buy say 1000 it would cost me $60,000 which i dont have.
So i would look to an Option to buy at a strike price. Say the option cost is $2 so the option of 1000 ( 1 contract) cost me $2000
What do you call this type of trade.
Where do i get the info for it.(Codes and conduct the trade)
Do must online broker like etrade commsec do this.
Now if i get it wrong and the price of the share goes down to say $56 what happens?
what are my options?
look forward to a reply