Stock: Facebook (fb) option

Been thinking of buying FB stock and learn how to trade options intelligently.  This is the first option I’ve ever bought. A co worker seems like he’s experienced at option trading so I’ve asked him for some guidance.  He recently bought some so I followed suit at a better price than him.

Bought Jan 14 $20 call option priced at $7.  So I need FB to be above $27 sometime before Jan 14 to make money.  Seems like a reasonable bet.Basically need FB to be up 5% by the end of the year.  Hopefully it’ll be OK.

A bit interested why he bought that call price as opposed to a higher call price.

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