can you explain this in detail?
U basically betting on the stock to either rise or fall. For example:
I can buy up to 100 contracts of AMD right now at $1.64 per contract which in options dollars estimates to $164 per contract. Right now amd sitting at $25 a share and im betting its gonna hit above $30 by feb. 2019. I have until that date to have the stock rise to that price to make money. Meaning even if it hits $30 by feb. I can sell my profits before the deadline. For example:
I buy 4 contracts which means im investing $656. The call is that the stock will have to reach $30 by feb. 2019. So im betting it will go up $5 by that date. So lets say it hits $33 in december. Its well past the $30 mark so i can sell or hold if i think its gonna hit higher. I decide to sell.
So my original investment was $656 when stock was at $25. Now that its at $33.00 i sell off the 4 contracts by how much the stock is worth now but its thru options trade which means each contract is now worth $300 because it went up to $33. So whats $300 times 4? $1200. So i doubled my money by betting that the stock would rise to $30(or rise $5 more then where its at) in 5 months.
It may sound difficult and i may be explaining it akwardly so i advise u check youtube. They have 10 min vids on what options trades are and how they wprk. Its a medium to high risk high reward type of thing.
I'm about to read up on this shyt and try and make some real money
damn that's kinda high right now... Wasn't the shyt at $10 a few years ago???