Maybe you decide to take a chance on Twitter stock going from $19 to $40 in the next six months. Instead of buying one share of the stock, you could buy ten call options for $2 each, which gives you the right to buy Twitter stock for $30 anytime in the next six months. If the price does go to $40, you’ll make $80 ($80 = ($40 – $30)*10 – $20). That’s much more than the $21 you’d make if you just bought one share of Twitter, but there is also more risk. If the price falls to $17, your call options are worthless, and you lose the full $20 you spent on them. If you bought one share of the stock,
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