Expiration 1.15.27
With price nearing all time lows(-4.4 PE), the Bear inside of me felt like better times must be ahead. Having just sold the Del Taco portion of the business at a substantial loss, along with the closures of 200 underperforming stores, hopefully that will free them of dead weight. I made this Options trade, as an alternative way to control 300 shares of JACK until 1.15.27. Purchasing these contracts for $1,590.12 vs $4,563 is $2,972.88 less than a traditional investment to buy 300 shares of the equity at $15.21 per share. The main difference is that an equity holder will yield a 100% capital gain, or loss as price fluctuates over an unlimited amount of time. Opposed to the price of the contract to control the 300 shares, which will move in correlation with equity price but also derives value from the remaining time before expiration of the contract as well.
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