An option contract represents 100 shares. So you have to multiply the price by 100. If it some how hits 45, you have the option to sell the contract for substantially more than the $14 you payed for it. Or say it hit $80, you have the right to purchase the shares for $4,500. The seller would have no choice but to sell them to you for 45 no matter how high it went.
Oh and there is no obligation to take the shares I will help you close out your contract if thats the route you want to go. But it's just the opposite to close out. You buy the one you now own, all you need to do is something called sell to close to finish off the transaction, I will look up how to do it on RH. No biggie I got chu if you do this.
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Why $14 and not $0.14? What does the $0.14 mean? And if the stock does somehow hit $45 on Monday or Tuesday, how much money was made?
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An option contract represents 100 shares. So you have to multiply the price by 100. If it some how hits 45, you have the option to sell the contract for substantially more than the $14 you payed for it. Or say it hit $80, you have the right to purchase the shares for $4,500. The seller would have no choice but to sell them to you for 45 no matter how high it went.
Oh and there is no obligation to take the shares I will help you close out your contract if thats the route you want to go. But it's just the opposite to close out. You buy the one you now own, all you need to do is something called sell to close to finish off the transaction, I will look up how to do it on RH. No biggie I got chu if you do this.
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This is starting to make a lot more sense. Thanks bro.
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Any time homie. Once you understand the ins and outs options are a ton of fun.
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