Im planning to buy 100 shares of a stock that pays a divy so Im going to hold it until they stop paying out. Part of my creating a passive income plan.
My question is if I buy the call option and then execute it will it be better than buying 100 shares at current value?
stock trades for 6.75/share $685 with commission
Oct. 5x calls 1.80 $180 for the contract + $500 to exercise is 680 plus 10.75 commission= 695.75
my question is, is it worth the Extra security knowing i got in at $5 a share? Im hoping that I can wait it out a bit and the time decay will eat these options prices a bit more. but so far am I right? Is there a seprate commission fee for exercising a option?