Lino Cawthorne: By investing in options you buy the right to purchase a stock at a certain price (strike price) within a specified time frame (expiration date).I cannot tell you what the maximum profit is as it all depends on the specific circumstance. As an example let's say you bought Google options when the stock was at $200/share and you paid an option premium for that right of $20. If the stock rose to $400 (as it did in less than a year) your option increased in value to $200 and you made a 900% profit. But you also have to remember that about 80% of all stock options expire worthless, because the stock did not rise above the strike price....Show more
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