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got it so cut your losses early rather than wait if i think the stock has no chance of going my way. So just one more quick question. If i purchase a call option for a 3 month period would the ask would be higher to suppose to a one week or one month?

now i get it lol! great thanks for this!

oh wow i didnt know that. there was nothing in my book on this. So for example if i had paid an ask price of 1.20 but the strike price had only moved 1 then i would lose money. is this correct?

so if i bought a call option of 10$ and the strike price goes to 11$ and i sold i would make 1$ or if i bought a call option for ask price of 10 cents and then sold it at a bid price of 20 cents would i be making 10 cents?

Hi i was just watching this youtube video which really confused the hell oput of me. Am i, if purchasing a call option, making money of the bids and ask difference or the difference in the strike price??

Thanks guys! the info provided has been a huge help to me. I just hope one day i could be good enough to return the favor. Options (for now) seem like a better choice than just oput right buying the shares.

i dont think that i would ever want to shorting a naked option considering from what ive read, the loses are extremely greater than just buying a put option.

yes i now understand that i should buy the put instead of shorting due to my incredible lack of understanding at this moment. I had my terminology all mixed up because i kept paralleling it to stocks. I really just want to say to everyone how appreciative i am for your lessons. Thank you!!

see the thing that was confusing me was that people were saying buying a put when in my mind i thought it was selling a put like in stocks.

is this right? i guess what im asking now is how to buy the options on my platform

OH now i see. I was trying to relate shorting and longing options as you would a stock. I was thinking that when you wanted to short an option you would click on sell instead of the buy button. But now im understanding more clearly how this works. So when i want to short an option i would go...

the book is so confusing . it doesnt really answer the questions one might raise while reading the material. So talks in jargons that assume the reader is highly educated in the trading world not a beginner like myself. I would to like to know amongst other things is if an option (shorted)...

WHAT? This is why im tryin to learn. isnt this one of the many reasons why these forums are active? What better way to learn than to ask the pros themselves. And what the hell does my questions have anythin to do with you. Im tryin to learn. Im reading books about options but like any...

what im also confused about is see how appl is traidng above 100$. cant i just buy options right now for long at the strike price of 100$ and simply just sell it as soon as the order comes through?

i ve been reaidng about options. its just that it writing is somewhat complicated for me to understand. i just need someone to break it down in baby terms. lol

ok so if i put a put option not naked on a msft for example at 50$ it then goes up to 60 and keeps climbing. Can i just wait for the expiration date to expire and just lose the premium. or do have i buy the contracts and lose the premium and the difference?

AH I SEE so a call is shorting a stock and put is longing?

so just one more question to understand this put option. ex: say i bought (shorted) an option at 12$. the stock then tanked down to 6$. i would then be given the profits of 6$ per share no? i asked this question to other traders but honestly i dont know why but they always explain things...

thank u.

what im asking is can i play the put option like how i can play a intraday short position on a stock