so the premium is cost of the option. if you paid an option 1000$ you only get into your money when the value of the goods rise or fell by 1000$+ depending if it's put or a call correct?
PLEASE CORRECT ME IF I'M WRONG:
AN OPTION AS CAN'T CARRY A NEGATIVE VALUE IT CAN JUST BECOME WORTHLESS.
the value of an option = the premium X the qty of goods.
therefore the risk can't excede the value of the option
the parametres that's establish the profit or losses are
the value...
PLEASE CORRECT ME IF I'M WRONG:
AN OPTION AS CAN'T CARRY A NEGATIVE VALUE IT CAN JUST BECOME WORTHLESS
so the parametres that's establish the profit or losses are
the value of the good controled by that option at the time of buying and selling.
the risk: in buying an option depends...
i do not have any intention to trades real money at all at the moment. as i said i'm just interested.
so if you have bit of time could you tell me if i'm correct.
i understand that the difference between option and future is that futures can carries negative value: not the options
the...
the commodity in question is heating oil for delivery in january.
if i understand correctly. this means that 1020 dollards (ie one option) control 42 000 gall of heating oil.
so the investment is always the price of the option. ie 1020 dollards for this particular contract.
so what's...
reading your posts you seems all to be experts.
a friend of mine just told me a bit about options and futures yesterday. He told me: that if he was buying an call option of HOf09 for exemple @ 1020 usd for 42 000gal. with an Strike price of 2.87 (god knows what that mean).
He show me on a...
reading your posts you seems all to be experts.
a friend of mine just told me a bit about options and futures yesterday. He told me: that if he was buying an call option of HOf09 for exemple @ 1020 usd for 42 000gal. with an Strike price of 2.87 (god knows what that mean).
He show me on a...
reading your posts you seems all to be experts.
a friend of mine just told me a bit about options and futures yesterday. He told me: that if he was buying an call option of HOf09 for exemple @ 1020 usd for 42 000gal. with an Strike price of 2.87 (god knows what that mean).
He show me on a...
a friend told me that if for exemple i was buying an option of HOg09 for exemple @ 1020 usd for 42 000gal.
every time that the gal takes one cents up from the time I will enter the market (at 2.00 dollards) 2 dollards for exemple. i'll make a 420 dolards profit!!
according to him if i had...