I thought you pay the "Ask" price when buying an option, in this case $7.15.
Also, do you have to wait until the third Friday of the indicated month to exercise your right to buy? Or can you exercise your right to buy anytime between the day that you buy and the expiration date?
Thanks. I understood this all already from reading a book buts its really nice to see it explained by video. Thanks alot :-). I feel more comfortable now to make my first trade!
Greetings my friend, just wanted to let you know not to trade the forex market, watch my forex video and you'll see it's a scam.
I'm trading Oil now, if you haven't tried it you may want to, it's the best thing I personally have ever found, I'm able to trade it everyday and make money, and do so in a very precise way.
You pay $700 upfront, the value of the call option on that 3rd Friday is $1,000 if Microsoft market price did indeed move up to $40 a share ( $40 - $30 times 100 shares). End result is a $300 net profit. This excludes any commissions you must pay.
Very easy, you buy the premium at $2, later the stock go up the premium will changes, let's said the premium changes to $2.50. $.50cent is your profit...
I thought you pay the "Ask" price when buying an option, in this case $7.15.
Also, do you have to wait until the third Friday of the indicated month to exercise your right to buy? Or can you exercise your right to buy anytime between the day that you buy and the expiration date?
chicks123 6 months ago
Thanks. I understood this all already from reading a book buts its really nice to see it explained by video. Thanks alot :-). I feel more comfortable now to make my first trade!
provoken256 1 year ago 2
Hi, how do you put stop loss in your put/call options trade. thanks :)
lunokbakas 1 year ago
Greetings my friend, just wanted to let you know not to trade the forex market, watch my forex video and you'll see it's a scam.
I'm trading Oil now, if you haven't tried it you may want to, it's the best thing I personally have ever found, I'm able to trade it everyday and make money, and do so in a very precise way.
Sincerely,
David
OilTradeInstruction 2 years ago
don't exercise, sit on the couch, and get sloppy
bluerider2012 2 years ago
idiots
klayed 2 years ago
You pay $700 upfront, the value of the call option on that 3rd Friday is $1,000 if Microsoft market price did indeed move up to $40 a share ( $40 - $30 times 100 shares). End result is a $300 net profit. This excludes any commissions you must pay.
KevinNJ789 3 years ago
Very easy, you buy the premium at $2, later the stock go up the premium will changes, let's said the premium changes to $2.50. $.50cent is your profit...
winter83love 3 years ago
it was 30 call. he has right to buy at 30 and can sell at market price which is 40 he will get 40 - 30 = 10 back.
so 10 - 7 = 3(profit)
yourpalcliffy 3 years ago
He has a $300 profit.
Alapup888 3 years ago