Options Trading Tutorial

Question about stock options...?

As an example Visa closed today at 75.63. Now a May 45 Call option is selling for 31.00. Let say we bought this contract at 10.00 My question is if you sold your contract today(not exercised, but sold) what would have been your cost to buy the option and what would be your total profit? Please remember we are not exercising the option, but selling the contract. I am trying to gain some information on options trading, thanks. thanks both very much!

Public Comments

1. Sold at 31. Bought at 10. Equals $21 profit. One contract equals $2100 profit minus commissions.
2. If you had bought the contract at $10.00 it would have cost your $1,000. If you had sold it for $31.00 you would have received $3,100. That would make your total profit $3,100 - $1,000 = $2,100.
3. Check out; Options Made Easy, Cohen Also; http://www.optionplanet.com/assembled/list.html http://www.redoption.com/index.php
4. Correct you have a $2100 profit. you may want to place a stop loss or take some off the table.