When you look to buy a tech stock trading between $1 and $3, you have to be clear that you're buying shares in a potential bankruptcy. Stocks in this category are option plays on survival, and you should buy them only if you can afford to lose 100% of your money, as stocks become worthless at bankruptcy.Keep in mind that if you buy a stock option, that option expires worthless at its expiration date. In the case of buying a stock trading under three bucks, there is no expiration date, but it is worthless on bankruptcy, so the price you pay is the premium.
Low-Cost Tech Stocks: Options on Survival
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