1) That's exactly what I presented in the example, but just because the option is out of the money doesn't mean its not profitable.
2) It was a hypothetical example, delta 1 used for simplicity
You haven't answered my question.
Hi everybody,
I'm new to options trading, I just started learning about it a week ago.
Could someone please explain in what scenario the ITM, OTM, ATM actually takes effect?
What I mean is....
If SPY is currently trading at 179 and I buy 1 contract CALL at 185 strike for $1.79 - this...