Call Option Chain Explained
December 19, 2010 by Options Choices
Filed under Call options
The basics on how to find a call option chain and understanding the details.
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Thanks. I understood this all already from reading a book buts its really nice to see it explained by video. Thanks alot
. I feel more comfortable now to make my first trade!
Hi, how do you put stop loss in your put/call options trade. thanks
Greetings my friend, just wanted to let you know not to trade the forex market, watch my forex video and you’ll see it’s a scam.
I’m trading Oil now, if you haven’t tried it you may want to, it’s the best thing I personally have ever found, I’m able to trade it everyday and make money, and do so in a very precise way.
Sincerely,
David
don’t exercise, sit on the couch, and get sloppy
idiots
You pay $700 upfront, the value of the call option on that 3rd Friday is $1,000 if Microsoft market price did indeed move up to $40 a share ( $40 – $30 times 100 shares). End result is a $300 net profit. This excludes any commissions you must pay.
Very easy, you buy the premium at $2, later the stock go up the premium will changes, let’s said the premium changes to $2.50. $.50cent is your profit…
it was 30 call. he has right to buy at 30 and can sell at market price which is 40 he will get 40 – 30 = 10 back.
so 10 – 7 = 3(profit)
He has a $300 profit.
I must be missing something. You pay $700 up front and you get back $300. Aren’t you $400 in the hole? Bad trade right?
did I get it right. he invested 700 bucks and made 300? does he have to buy the msn stocks?
very nice video
Maybe next time u could show how the premium of an option is determined by the value of the underlying stock (Calculations)
Thank you, question
Can the historical prices useful to try to evaluate the right options to purchase?
awesome, great explaination. Thanks
Question? The month is April and if you buy a June call option does that option still expire on the 3rd Friday of April or do you have the call option untill the 3rd Friday in June?
Very nice explanation, OptionCrunch. I’m subscribing to your videos. Keep them coming.
d7