strike price or dilluted average?
if the price is below strike price but the average is already gain, if we sell means are we get a gain or no?
chart 1.2 (buy) now 1.8 green 50%
do we need always wait to pass strike price + premium in order to get money?
thanks in advance
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Patriot trader : If it is a call, then your breakeven point will be above the strike price even if you are in the green or (money). If it's a put, then your breakeven point will be below the strike price. Once again, even if you are in the green. Being in the green simply means your option still has value. But until you hit your breakeven point, you will not hit a profit.
Learning by Doing OP Patriot trader : thanks for your reply brother
so means even i sell in the same day, i dont get the money from the spike?
like my capital is 2 sell in 3.5 in the same day
Patriot trader Learning by Doing OP : No, you can sell anytime, especially after a spike. As long as you have passed your breakeven price, you make a profit. Eg.. Buy a 180 strike price for .50, then most likely, your breakeven price is 180.50. Anything after that should be profit.