Can someone explain this call option

[beerboy17]

11 contracts 100 C Sept 2024 Exp at 20$.

Can someone explain this.. ? if the share price raises to 200 then will my contract price will be 120$/per share ? 

so if I invest 11(number of contracts)*100(shares per contract)*20(price of each contract) = 22k how much we get in return ?

[Gorantlamdhav]

you can buy those 1100 shares at the rate of $100/ share any day until sep 2024.

you can choose not to buy also.

if you buy , you need to pay 1100*100= 110,000 

why will you buy? Because the price of stock is at $150 for example, you invested 110k+22k= 132k 

then immediately sell at 1100*150= 165k so your profit is 150-132= 18k

 

[Swatkat]

14 minutes ago, beerboy17 said:

11 contracts 100 C Sept 2024 Exp at 20$.

Can someone explain this.. ? if the share price raises to 200 then will my contract price will be 120$/per share ? 

so if I invest 11(number of contracts)*100(shares per contract)*20(price of each contract) = 22k how much we get in return ?

Poye kaalam dagarapadindhi.. dnt invest in options nalanti mindset lekapothey. 25000 mingabettea asalu options telinapudu you cant even sell. Sell fast ga cheyali lekapothey automatic ga set chesko.. vasthey baguntadhi literally 2-3 minutes lo 10000 to 14000 k pothahdi.

[beerboy17]

22 minutes ago, Gorantlamdhav said:

you can buy those 1100 shares at the rate of $100/ share any day until sep 2024.

you can choose not to buy also.

if you buy , you need to pay 1100*100= 110,000 

why will you buy? Because the price of stock is at $150 for example, you invested 110k+22k= 132k 

then immediately sell at 1100*150= 165k so your profit is 150-132= 18k

 

Ok, what if I don't buy the shares before expiry of sept 2024 what happens on the invested contract amount of 22k ? 

can I see the contracts alone in the market ? 

[Thokkalee]

10 minutes ago, beerboy17 said:

Ok, what if I don't buy the shares before expiry of sept 2024 what happens on the invested contract amount of 22k ? 

can I see the contracts alone in the market ? 

You can sell the call options at the current price.. you only exercise the options if you want to buy the stock.. 

[Gorantlamdhav]

26 minutes ago, beerboy17 said:

Ok, what if I don't buy the shares before expiry of sept 2024 what happens on the invested contract amount of 22k ? 

can I see the contracts alone in the market ? 

You did not invest 22k, you paid fees to write this agreement.its gone.

 You can buy that 100 stocks or not buy is your choice, you are not required to buy so it expires if you don’t buy.

for example stock becomes $65/stock, why would you buy for $100/stock? You will let it expire 

[beerboy17]

Got it bro so its like getting the contract by paying the premium fee which is 22k here..