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Thanks! Your replies were great. I think I understand now. Glad to hear it was a safe trade! :)

Alright, so I have been reading up on options (almost made it through one whole book! lol) and I have tested the waters with a fairly safe trade. At least I hope it is safe. That is where the question comes in. :) Here is what I did: I bought 200 shares of YELP at 24.8499 per share. The...