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  On 1/13/2025 at 9:11 PM, viky said:

This morning, bought MSFT exp 06/18/26 Buy call Strike Price 465 for 39.15

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naaku options game not allowed....

anduke stock konadame... hope Adobe lo poinai...deentlo ravali..

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  On 1/13/2025 at 9:11 PM, viky said:

This morning, bought MSFT exp 06/18/26 Buy call Strike Price 465 for 39.15praying-dandam.gif

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a price hit aite..neeku enta vastai @viky

u are asking him to buy 100 stocks at 46,500$ right...

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  On 1/13/2025 at 9:52 PM, viky said:

IDEAL Scenario:

I am telling them that I will buy the stock at 465, for the that I paid the premium $3900 ($39 premium for each stock * 100 stocks )

Lets say if the stock price jumps to 565 on 06/18/26, so what I will do is exercise that option i.e I am going to buy 100 stocks for 465  i,e for $46500. since the current market price for the stock is 565, what I will do is sell the 100 stocks for 565, so gaining profit of $10000 (Because i bought for 465).

So my total profit would be $10000 (from selling stocks) - $3900( premium)  = $6100

In this case when I stimulated returns on robinhood, if the price of the stock jumped to 565 tomorrow the price of option would jump to $64 i.e 64 * 100 = $6400

if you dont have $46500 ,  you can sell your option for $64 i.e. 64*100 = $6400  ($64 premium for each stock * 100 stocks ) so you make a profit of $2500 (because you paid $39 to buy option and now selling it for $64)

 

Sudigadu Scenario:

If I buy MSFT exp 01/24/25 Buy call Strike Price 465 for 0.05 

I am telling them that I will buy the stock at 465, for the that I paid the premium $5 ( 0.05*100)

Lets say if the stock price jumps to 565 TOMORROW so what I will do is exercise that option i.e I am going to buy 100 stocks for 465  i,e for $46500. since the current market price for the stock is 565, what I will do is sell the 100 stocks for 565, so gaining profit of $10000 (Because i bought for 465).

So my total profit would be $10000 (from selling stocks) - $5( premium)  = $9995

 

In this case when I stimulated returns on robinhood, the price of option would jump to $8 (i.e $8 premium for each stock * 100 )= $800

if you dont have $46500 ,  you can sell your option for $8 and make $800 profit

 

most people dont have $46500 so they will settle with $800 profit, but people who have money will buy the option contract for $800(8 * 100)  of 100 stocks for 465 and sell it for higher market price of 565 and gain $9200 profit.

This is long option, prices jumping up and down should be impact the option strike price, but as we get closer to the expiration date, the value of the option will be dropping, because of time decay.

Hope it make sense,  mohanbabu-soundarya.png

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  On 1/13/2025 at 10:12 PM, Spartan said:

thanks @viky that helps..

na brokerage account lo (company paid)... options trading ledu..

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https://www.instagram.com/reel/DExMesMyl_d/?igsh=MzRlODBiNWFlZA==

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