RE:PLEASE ANSWER ANYONE :,(This really isnt the place to be looking for advice. Also nobody cares your true or not dollar figures
Nathan2018 wrote: Hi there, I learned about options and i understand it. please answer this questions for me. remb, please answer as if you are explaining to an idioott :p 1) are there interests that I have to pay for holding options? (a contract that says i can buy ABC stock at strike price of 10$) 2) If i hold options....(the contract)......am i allowed to sell that contract in the open market? (i think the answer is yes..thats why there is bid and ask for options correct?) 3) lets say that i have a putt option for ABC......and if i am trying to get rid of that putt option.....do i have to own the shares of ABC.....to sell the putt options? i read somewhere that when someone buys the option and exercise it....the other person MUST HAVE THE SHARES TO GIVE IT...example 100 shares of ABC>.... so if i am selling ABC putts......do i have to have ABC shares.....so when the buyer exercises the right to buy ABC before expiry date....those shares come out of me? (i dont think so correct)....the bank deals with that in the background? 4) some of the options are like this..... say stock XYZ is trading now at 10 $ i see call options as follows... strike rate is 8 dollar....... BID or ASK is at ......1.95 that means....8 + 1.95 = 9.95 total price you will pay if you pay premium and exercise the right to buy that stock next day at 10 dollar.... that means you already made 0.05$ profit..... how come? is it becayse people think this stock will not move up or down much....meaning no volatility....or maybe this stock is going to go down...so they are making it look profitable..? thank you all.... go acb go please please go apha go.... :( you are killing me with 17k loss :( also i am so glad i held onto facebook stock... i bought it at 214$ for 20k lmao...i almost died when it went to 124$ and did not have cash to avg down or was scared about recession. so happy its back to where it is... :D Read more at https://stockhouse.com/companies/bullboard#wjd8klWjLJSfoIyi.99