Why are Options Expensive?

With most options trading at just a few dollars or less, how can they be expensive?

   

With most options trading at just a few dollars or less, how can they be expensive? John Jagerson explains how options premium and time value can add to their price in a way that just doesn’t apply for stocks–and why going long options still makes sense despite the price.

InvestorPlace advisors John Jagerson and S. Wade Hansen are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news.  Get in on the next trade and get 1 free month today by clicking here.

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