I bought a 6.16 CAll at the end of May and haven't checked it ever since.
$Tesla (TSLA.US)$ Today, when I opened it, it increased sevenfold!
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70882358 OP : Looks like Capital is still in office and the only CEO currently in office is Tsla or Genshin
天真 70882358 OP : Uh, yes, currently at Tesla, I only focus on bad news. As long as there's no bad news, it's just going up. There's so much good news that I'm too lazy to read it.
71702937 : Please tell me, after buying Call, can I only buy stocks to close my position or give up and not take action? Or can I sell this call directly?
gabrielgoh 71702937 : There are expiry dates and strike prices to take note off. For options, lets assume company A has a call with details below:
Long call
Strike price: $230 (6.3)
Expiry date: 8th June
Call price: 2.3
Yes, you can. Lets say u buy a call lets say at 2.3 but sold off at 4.6 but the strike price is at 6.3 . You will definitely earn the right amount for the lot movement, but you will lose at least 2-4% of your earnings due to you not fulfilling your own call strike price. Understand?
Silverbat : Congrats
️
71477248 : This must be congratulated
Mars83 : Amazing stock. Any chance of it to reach 300?
71702937 gabrielgoh : Thanks so much, I'm still a bit confused, where did this 6.3 come from? If you buy 2.3 and then sell at 4.6, isn't the median spread profit? 4.6-2.3=2.3?
Also, if I buy a bullish option, do I need to have enough money to buy the corresponding underlying stock? Or is it okay if you have money to buy options?
gabrielgoh 71702937 : Hi. The 6.3 is a rough estimate of the strike price of $230.
Assume that the
2.3 is $140
4.6 is $190
How do you calculate is profits? . In options, calculating profits is base on how u interpret your working, 1 decimal point or 2 decimal point of your lot. For example:
2.3 to 2.56 = clearly 0.26 increase
each movement in options is a x100, so your profit is $26.
So back to your statement, 2.3 to 4.6 is yes, 2.3. So take 2.3 multiple by 100 which will be $230 earned per lot you bought. So if you buy 10 lots of 2.3 and it rose to 4.6, you would take
10 lots x (2.3 x 100) = $2300 for your profit, but subtracting 2-4% as you did not hit the strike price of 6.3 so your total profit would be about 2200.
You do not need to buy underlying stocks to buy options. You just need to have enough and sufficient buying power to purchase options. Remember, options and stocks falls under the same category - investing. But the method of investing is different.
71702937 gabrielgoh : wow, so professional... I will try a little next time. thank you so much for your support and help
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