• Effendy : 1. If you do nothing and wait until January 17 next year, you will need 0.04 million (400 x 100 shares) to own 100 shares of Tesla. If the stock price is higher than 400 by then, congratulations. (4xx (per share) - 400) x 100 will be your profit.
  2. If Tesla continues to rise above 400, the value of your call options will keep increasing. You sell the 400 call option and profit from the difference. The current value of the 400 call option is 28, and you bought it at 17.50; (28 - 17.5) x 100 will be your profit.

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• Effendy : I believe then your option is sold off?

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• Effendy sam li OP : Not talking about you, it's a reply to the previous message.

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• Effendy 72558182 : Options (Basic 4 combinations)
  Call / Put
  Buy / Sell
  Each option = 100 shares
  Buy Call (Bullish) - you expect price to keep going up so you buy a call to lock at a current/lower price. You pay the premium. You want to buy so you should expect to have the cash to pay for the shares when the option expires in the money (ITM).
  Sell Call (Bearish) - you expect price to keep going down so you sell a call to lock at current price/higher price. You collect the premium. You should have 100 shares or at least have the money to buy 100 shares when the option expires in the money (ITM).
  Buy Put (Bearish) - you expect price to keep going down so you buy a put to lock at current price/higher price. You pay the premium. You should have 100 shares or at least have the money to buy 100 shares when the option expires in the money (ITM).
  Sell Put (Bullish) - you expect price to keep going up so you sell a put to lock at a current/lower price. You collect the premium. You want to buy so you should expect to have the cash to pay for the shares when the option expires in the money (ITM).
  In short, buying any call or put means you pay the option premium. Selling any call or put means you collect the option premium.
  If you do not have the shares or the money to buy the shares when options expires in the money (ITM), then you can buy and sell back the options to collect the differences between what you paid/collect vs what you gain/lost.
  Check out MooMoo’s tutorial on options in their learning for the basics on options.

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• Effendy : I didn't understand your question.

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• Effendy : Considering that it’s going to expire tonight, you could;
  1. Quick sell it at open hours to get fractional value of your premiums back.
  2. Monitor the open hours and when you see NVDA price raise up, sell it then to get back more from your option.
  3. Your option is currently ATM which means if it maintains 146 or higher, you would be assigned 100 shares which you can hold (if you have sufficient cash to cover the call).

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• Effendy : Options is not a bad thing. If you expect the long term value of the stock to raise, using a call option to buy it at a price using options is great.
  I read a great analogy where options is like when you place a deposit/option to secure the house you want to get at the price.
  If you buy 1DTE or 0DTE or same week expiration options to do a quick “flip”, then that’s where it becomes more of a “calculated” gamble. That’s where all the big money makers aka hedge funds play and us small retailers either ride with them or get burnt.

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• Effendy : Expires when the market closes but then again, ATM/ITM option maybe assigned anytime as it’s American option.
  I would recommend if you want to do options, watch a few videos on YouTube in this.

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• Effendy : It is. For example, if you have the cash to purchase 100 shares at 146 and you feel bullish about the future price, you could;
  1. Buy 1 call option (you pay 2 premium) at 146 strike, so as the price rises to 152 and the option assigns, you get 100 shares at 146 (your average cost per share is 148; 146 price + 2 premium) and earn 400 profits right off. (152 - (146 price + 2 premium)).
  2. Sell 1 put option (you receive 2 premium) at 146 strike. If it drops lower to 145, although you get 100 shares at 146, the average cost is lower since you receive premium which you can hold long term until it rises. (146 price -2 premium), so your average cost per share is actually 144. You can still potentially earn 100 (145 - (146 price - 2 premium)).

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• Effendy aurelly OP : European and American style options are not regional options. They are actually terms used to describe two different types of option exercise.
  European Style Options: can be exercised only at expiration.
  American Style Options: can be exercised at any time prior to expiration.

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