Not to nit pick the great write up and well detailed points but there are plenty of reasons to recommend a call option over the stock. Investment needed is much less and risk is limited to the relatively smaller invested capital. If it's a short term momentum/speculative trade. Buying calls hedges a short position on actual stock (not th…
Not to nit pick the great write up and well detailed points but there are plenty of reasons to recommend a call option over the stock. Investment needed is much less and risk is limited to the relatively smaller invested capital. If it's a short term momentum/speculative trade. Buying calls hedges a short position on actual stock (not the case here though). Call spreads are especially used opportunistically to take advantage of earnings announcement. Simply choosing a call option over the actual stock is not unethical/immoral.
I just think it's hard to justify recommending a call option over a stock in most instances especially when the target audience is the general public. Point taken though, thanks!
Not to nit pick the great write up and well detailed points but there are plenty of reasons to recommend a call option over the stock. Investment needed is much less and risk is limited to the relatively smaller invested capital. If it's a short term momentum/speculative trade. Buying calls hedges a short position on actual stock (not the case here though). Call spreads are especially used opportunistically to take advantage of earnings announcement. Simply choosing a call option over the actual stock is not unethical/immoral.
I just think it's hard to justify recommending a call option over a stock in most instances especially when the target audience is the general public. Point taken though, thanks!