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if you buy a call do you want the stock price over or under the strick price?
If over what happens? If under what happens?
if you sell a call do you want the stock price over or under the strick price?
If over what happens? If under what happens?
If you buy a put do you want the stock price over or under the strick price?
If over what happens? If under what happens?
If you sell a put do you want the stock price over or under the strick price?
If over what happens? If under what happens?

I just can't ever get it hoping someone can help me to understand and finally get it

2006-09-15 04:47:17 · 5 answers · asked by Rodney B 1 in Business & Finance Investing

5 answers

go to 888options.com

Free site with wonderful tools to help you learn!

Hope that helps!

2006-09-18 19:46:06 · answer #1 · answered by Yada Yada Yada 7 · 1 0

I have been told a hundred time but still don't understanda options.?

if you buy a call do you want the stock price over or under the strick price?
OVER - you are buying

If over what happens? If under what happens?
if the stock goes up you make a profit, if it goes down you lose

you sell a call do you want the stock price over or under the strick price?
If over what happens? If under what happens?
once you have bought the call option to sell it to close the deal
so if you buy a call option on a stock then and it has gone up then when you sell the call option it is worth more (as the stock is worth more) so you make a profit

If you buy a put do you want the stock price over or under the strick price?
UNDER - you are selling the stock

If over what happens? If under what happens?
If the stock decreases in price then you have made profit as you have sold at a higher price and bought back at a lower price

If you sell a put do you want the stock price over or under the strick price?
Under to make a profit

If over what happens? If under what happens?
by selling the put you have closed the deal. if the stock has gone down you have made money

2006-09-15 14:16:42 · answer #2 · answered by gamesamk9 1 · 0 0

In very simplistic terms:

if you buy a call do you want the stock price over or under the strick price?
OVER strike price.

If over what happens? If under what happens?
Over=makes money Under=loses money

if you sell a call do you want the stock price over or under the strick price?
UNDER

If over what happens? If under what happens?
Over=lose money Under=makes money

If you buy a put do you want the stock price over or under the strick price?
UNDER

If over what happens? If under what happens?
Over=Lose Under=Gain

If you sell a put do you want the stock price over or under the strick price?
OVER

If over what happens? If under what happens?
Over=Gain Under=Lose

Note: That you don't necessarly have to go over/under strike price to make money, just in up/down direction, before expiration. You get the generalization.

2006-09-15 12:09:47 · answer #3 · answered by RV 2 · 0 0

If you can't get it, it would be in your best interest to stay away from options. Stick to mutual funds.

2006-09-15 11:52:28 · answer #4 · answered by Vegas 2 · 0 0

strike one call & one put actual deal in markrt u will automatically understanddddddddddddd

2006-09-16 08:22:29 · answer #5 · answered by shuk_anil 2 · 0 0

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