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rookies question
- Thread starter nouveau
- Start date
Quote from nouveau:
if you buy a option when the market for this option is 2 dollards and striking price 2.80 dollards.
can you sell your option at 2.2 dollard and make a profit?
ANY TIME you sell ANY option for twenty cents more than you pay for it, you have a profit. But be aware of commissions. They may be more than your profit.
The strike price is irrelevant.
Mark
Quote from nouveau:
what is the strinking price
In your original question, you said the striking price is 2.80.
The strike price is the price at which the call owner has the right to buy 100 shares.
It's also the price at which the put owner has the right to sell 100 shares.
Please be careful. If you don't understand this, then you are pobably not yet ready to trade options.
Mark
http://blog.mdwoptions.com/options_for_rookies/
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 bought this option i'll now have made 8 time 420 dollards as the option are now at 2.08 dollards or so.
is that correct?
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 bought this option i'll now have made 8 time 420 dollards as the option are now at 2.08 dollards or so.
is that correct?
Quote from nouveau:
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 bought this option i'll now have made 8 time 420 dollards as the option are now at 2.08 dollards or so.
is that correct?
Sorry, I know nothing about commodity options.
But if you buy call options and the asset moves higher - you have a profit - most of the time.
There is a lot more to learn about trading options.
Mark