Options examine?
ok say i bought an option for 3 dollars so thats 900 dollars total and speak the option goes up to 4 dollars so very soon the option is worth 1600. so my question is am i with the sole purpose up 700 dollars so im still down 200 on the original option price or am i up the complete 1600.
Answers: Each publicly traded option covers 100 shares of the underlying stock. In your example, if you purchase 1 option contract for a quote of $3, that mechanism it cost you $300 total (plus commission). If the price of that option went to $4 per pick, it is now worth $400. If you sold it at $4, you would have a $100 profit (minus commissions to sell).
After reading your interview, you should do nothing in option except study them, Do not trade them, do not invest in them. study them only
1 contract is for 100 shares,
if the pick sells for $3, it will cost you $300 for 1 contract
If you sell that contract for $4, you'd receive $400, smaller number commissions.
In all seriousness, you better keep studying until that time you really hurt yourself financially
Your math is off. If you buy 1 option for $3 to be precise 100 * 3 = $300 (plus trade fee). If you sell it at $4 you get 100 * 4 = $400 (minus trade fee). So you made $100 minus 2 chance trade fees.
If you bought (3) $3 options for $900 and sold them at $4 ($1200), you would make $300 minus sale commissions for the 2 trades.
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Answers: Each publicly traded option covers 100 shares of the underlying stock. In your example, if you purchase 1 option contract for a quote of $3, that mechanism it cost you $300 total (plus commission). If the price of that option went to $4 per pick, it is now worth $400. If you sold it at $4, you would have a $100 profit (minus commissions to sell).
After reading your interview, you should do nothing in option except study them, Do not trade them, do not invest in them. study them only
1 contract is for 100 shares,
if the pick sells for $3, it will cost you $300 for 1 contract
If you sell that contract for $4, you'd receive $400, smaller number commissions.
In all seriousness, you better keep studying until that time you really hurt yourself financially
Your math is off. If you buy 1 option for $3 to be precise 100 * 3 = $300 (plus trade fee). If you sell it at $4 you get 100 * 4 = $400 (minus trade fee). So you made $100 minus 2 chance trade fees.
If you bought (3) $3 options for $900 and sold them at $4 ($1200), you would make $300 minus sale commissions for the 2 trades.