I don’t completely understand call options. I kind of understand how they give you tons of leverage (think 1k >>> 100k).
I’m assuming that 1k that they’ve invested in calls are just to purchase the contract, but if they were to exercise said contract, wouldn’t they have to buy the 100 shares at their strike price, making their initial investment a lot higher than that 1k?
Or are they simply selling their expiring contracts for huge gains (and not have to invest any more capital?).
