Friday, December 16, 2016

New to Options Trading, Please Help Me Makes Sense of This

Trying to get the hang of placing calls and puts for options trading. I drew a schematic of a theoretical call situation and was wondering how this works out if I exercise my options of buying 100 shares of this stock on the Aug 29 date once it passes my call price of $2.50 a share that I placed for the Aug 30 date? Does this mean if I decide to purchase when it passes the Aug 29 price I will do so at the $2.50 a share price, but if I waited until my contract expires on Aug 30 I would be buying it at $2.50 still when it is actually worth more?

Thanks!

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Submitted December 16, 2016 at 06:46PM by LazarusCam http://ift.tt/2hDT8cv

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