you can purchase the shares at 17.50 but remember you paid 1.53per share which meansyou
would also have to add in the 1.53 you already paid for the option which means the stock
would have to be above 19,03 on or before end of business on nov 18 (the third friday) for
the trade to be profitable,most options are sold before the expiration as to avoid buying
the stock and then reselling

Last edited on: 09-19-2009 07:05 pm

options on stocks expire the third friday of month in november that would be the 18th
17.50 strike at lets say 1.53 would cost you 1.53 a share times 100 shares as all stock
options consist of 100 shares the cost of option would be 153.00 plus brokerage charge
anyways the stock would have to rise to 19.03 for you to break even,or the stock could
move quickly and then the option could rise on this metric and you could profit,I would go
to book store and buy basic option book that you could read and outline as you look online
about options,options xpress is a site where you could learn and purchase options at the
same time good luck

Thanks for the reply, Learning is the reason I am postiing here. I have no intentions of
buying options for quite awhile.

I will check the sites you listed.

ct, i'll be nice, you need to go to oic.com, or 888 options, or the grand site of
cboe.com. there you will find out how much you dont know. do your self a favor before you
let your money get dusted in the wind. you need to know basic bid and ask, and the last
transaction for the option, if you dont have a basic understanding that each contract"
always consists of 100 shares,etc. the great thing about those sites are, they wrote the
book on ops.do your self a favor.it is a craft,learn it that way, it takes a little time.

Appologize, I had the listing spaced well in my response, but it kind of got squished
together.

I am still confused on options trading, and have read pretty much every page of worth I
can find.

I fully understand the concept, I get it that you enter into a contract to buy or sell a
stock at a certain price. What I don't get his how you read the option listings.

For example, I use bofa investment services. On their site they list an option. I am just
going to pick one on BAC (I own shares of BAC). Here is what I see.
Nov. 17.50 Call
call last sale high/low Strike
BYOKZ 1.53 1.69 17.50
1 Day Ago 0.05 1.47

Now when I click on that option i see.
last change Bid Size
1.53 +.05 1.51 591

Ok I do NOT own that option, I am just wondering how you read this. Lets assume I wanted
to buy this option for Nov. 17.

How much will I have to pay and how many shares would I have the option to buy?
If it hits 18.00 before Nov 17 I basically can exercise my option for .50 cents a share?
What if it never goes back to 17.50 and I let it expire, how much will i owe?

Any help would be greatly appreciated!

As I said, I understand the general concept of options, but I dont understand how to read
the spreadsheet.

Whats my premium, how many shares are in a contract, and what will a contract cost?

Thanks a bunch,
CTDonaho