Ok I have read and read and read and still don't understand what an option is.

So say I buy 100 shares at 1 dollar a share. I put down 10 percent and agree to but it in a week. Then let's say hypothetically the stock goes up to 2 dollars. Can I still get it fro 1 dollar as long as its before the expiration date.

 

Well, you're conflating it a bit.

You are buying 1 option, so that REPRESENTS 100 shares.

Value of shares = 100 bux.
So hypothetically you would pay in your example, 10 bux for the 1 contract option to buy 100 shares at $1. A call option.

If the stock goes up to 2 bux per share, you would exercise your option to buy it at 1 per share.

So you paid 10 bux for the call option. You exercise the option, and you now own those 100 shares with a value of 200 bux, minus the 10 paid for the option, so you have 190 bux in your pocket if you can then immediately sell those 100 shares at 2 bux per.

 

Ah now I see. So is 10 percent the norm to secure or set up an option. And who desides the deal. Who makes the option. Do I put in an offer saying I'll buy the option and then state the terms or is it negotiated with someone and myself.

 

For call options, it is a good way to describe them for us newbies.

For put options, it is just the reverse: You pay someone for the right to sell him/her your stocks (put options) at an agreed upon price within a certain date. And you have the option not to sell it if you don't like the market price, i.e., if the market price is higher than the price you agreed to sell.

 

@TheFoot

After reading your replies on this thread it is clear that you still don't have a clue about options. And you have little hope of every understanding them.

Perhaps it's better to move onto something else.

 

Did I get the basics down, at least? It would help my confidence if you said yes.

 

Why don't you try checking out some youtube videos on the topic? It will give you more clarity in a thorough manner.

 

this ended up in my inbox.
any help?
any good?
https://www.powercycletrading.com/options-trading-webinar-recording/

 

I don't think so. You and I and @TheFoot are in the same boat and the boat is sinking.

 

Lmao, we will get there "together". I'm more interested in just trading stocks but figured I should learn what was the deal with options and futures too. I get forex. That's easy. Still have no clue about futures but that is also in part cause I have did zero research. Sometimes I get the feeling that people who are in the know want to keep it a big secret lol. But every one in here has been really cool.