rookies question

Discussion in 'Options' started by nouveau, Oct 30, 2008.

  1. nouveau


    if you buy a option when the market for this option is 2 dollards and striking price 2.80 dollards.
    can you sell your option at 2.2 dollard and make a profit?
  2. ANY TIME you sell ANY option for twenty cents more than you pay for it, you have a profit. But be aware of commissions. They may be more than your profit.

    The strike price is irrelevant.

  3. nouveau


    what is the strinking price
  4. In your original question, you said the striking price is 2.80.

    The strike price is the price at which the call owner has the right to buy 100 shares.

    It's also the price at which the put owner has the right to sell 100 shares.

    Please be careful. If you don't understand this, then you are pobably not yet ready to trade options.

  5. nouveau


    a friend told me that if for exemple i was buying an option of HOg09 for exemple @ 1020 usd for 42 000gal.
    every time that the gal takes one cents up from the time I will enter the market (at 2.00 dollards) 2 dollards for exemple. i'll make a 420 dolards profit!!
    according to him if i had bought this option i'll now have made 8 time 420 dollards as the option are now at 2.08 dollards or so.
    is that correct?
  6. nouveau


    i'm sure that i'm not ready to trade option, i'm just getting interested by it and would like to know if it's worse learning it
  7. MTE


    It doesn't matter what you trade, if you can sell something for more than you paid for it for then you have a profit, and if you sell something for less then you have a loss.

    This the most basic concept.
  8. nouveau


    i completly agreed but how this answer my question?
  9. Sorry, I know nothing about commodity options.

    But if you buy call options and the asset moves higher - you have a profit - most of the time.

    There is a lot more to learn about trading options.

  10. nouveau


    do you knwo any one who could help
    #10     Oct 30, 2008