Option Call

Day Lily : Congrats! Wish I understood how to do that.

Skinladder Day Lily : I also need to learn this magic

TechSavy OP : it's easy really.  I only do CALL options, this is betting a stock will be at or above the price on the date you choose. So, if you think LUNR will be at 10 say two weeks from now, here would be the trade:

you would do the following to place the trade

1 - choose " BUY TO OPEN"
2- PICK Friday, 22 Nov, this is the expiration date
3 - choose $10 strike price
4 - select the midpoint of the bid/ask

the trade will cost $85, that's the maximum. you can lose, you lose it if the stock isn't "IN THE MONEY" meaning it's above the price (10) at the time of expiration you picked.  

you can sell the option at any time, but this gets a little more tricky, I just let mine expire and take the profit.  if it's not "in the money" you lose your bet.

this is about as simple as I can make it and mostly correct, LOL.

Skinladder TechSavy OP : That's extremely helpful actually! Thank you for that

HailTheApocalypse TechSavy OP : thank you for taking the time to educate some of us who don't know how this works like myself. I read some 'how to' articles but it helps more when it's laid out the way you've laid it out. thanks again .

TechSavy OP : a PUT is the opposite of a call, you're betting the stock will drop.  it starts getting crazy after this with all kinds of wierd things you can do.

TechSavy OP : I prefer to only do CALLS because I like to bet a company will do good and the stock will go up and shareholders will be happy...you know, KARMA, LOL