So lets say I buy a call on ACB @ $6 with a cost of $2.50. That option costs me 1x2.5x100 which is $250.
So that call expires on Nov 16th 2018 and ACB hits $12. All in theory of course.
Do I need $600 in my questrade account to exercise that option? Or can I buy it, go into the negative then sell to level myself out and collect my profit.
Basically, do I need the cash up front in my TFSA or can I put that money in the account, buy regular stock and still exercise that option if I choose to do so?
Also, lets say on Nov 10th 2018 ACB hits $10 and I think that's good enough. Can I buy my 100 shares @ $6 early? 100 shares is the minimum you can lock in correct? Questrade only offers me contracts of 100.
Finally, before you jump down my throat about new investors and options. Im more or less curious as to how options work, I'm not quite in a position yet to buy options, I'm trying to learn more so I'm ready for the next step.
Submitted October 31, 2018 at 10:23AM by luckyzduckyz https://ift.tt/2Q9FADN
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