Let’s assume:
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Current stock price S? = $100
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One month later, stock = $300
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You’re considering 1-month call options.
| Strike | Option Cost (approx.) | Value at Expiration | Profit | Return |
|---|---|---|---|---|
| $100 (ATM) | $10 | $200 | $190 | 19× |
| $150 (OTM) | $5 | $150 | $145 | 29× |
| $200 (OTM) | $2 | $100 | $98 | 49× |
| $250 (deep OTM) | $1 | $50 | $49 | 49× |