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Shit tached @#%&! |
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Say the price is 5 pounds today and you place a call action in. In 3 weeks time if you wanted to buy shares of the club in large volumes you can purchase them at 5 pounds a share (based on the contract) Even if in three weeks time the share price has gone up to 7-8-9 pounds It’s done when there is expectation of the share price is to go up. So what happens is the shares get purchased at a lower than share value price and then can be sold to the market at the actual value, thus making a quick buck. Atleast that’s why I’ve been told, I’m no financial expert |
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