Open Question
Ok i have some basic questions about trading options that i need your help
with.
When you buy an option say the august 16 2008 $17.50 calls on TIN, when you buy
a call can you exercise before the date expires of the option, and when is the
earliest you can. and what if you let it ride through the experation date?
How much would you make if the aug options at .58 cents so you can get 100
shares for 58 dollars at the stike of 17.50. so does that mean once it crosses
17.50 your in the money, so 17.55 you up 5 cents on the option. or do you add
the 58 premium price onto the strike price and thats your break even?
and if after u buy the call option the premium goes up alot can u sell it and
make money of the premium getting higher
please let me know thanks
~case
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you need to go to oic.com and soak it up before you lose your shirt .....chris
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Case - do you have a streaming screen? If so, there's probably some arrows or a
symbol (or even a word) so that you can type in (this is the most basic way, I
think) the underlying symbol of the option, the month, the dollar amount. It
should come up so you can watch it for a few days along with your stocks. I
think it's better at the beginning to go out as long as you can, as close to the
trading price of the stock and make sure there is some volume and you didn't
just pick aapl at 200.
You need to get approved from your brokerage - they make you say you have lots
of experience.
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yes you can sell out of options most people actually trade option premiums
rather than trading for earnings per say
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to evaluate options pricing you look at theoretical values in whcih case you
must add 58 cents to the strike price but it is posible to make money below that
market depending on implied volatility/time decay in conjunction to price action
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2. you can't let it ride through the expiration. if you do the call becomes
worth less
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1rst you can excercise any time thats how american style options work
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