Been thinking of buying FB stock and learn how to trade options intelligently. This is the first option I’ve ever bought. A co worker seems like he’s experienced at option trading so I’ve asked him for some guidance. He recently bought some so I followed suit at a better price than him.
Bought Jan 14 $20 call option priced at $7. So I need FB to be above $27 sometime before Jan 14 to make money. Seems like a reasonable bet.Basically need FB to be up 5% by the end of the year. Hopefully it’ll be OK.
A bit interested why he bought that call price as opposed to a higher call price.