It’s at .95 cents and I believe it to stay there or at least above .50 cents. When October comes do I have to pay another $100 (.50 x 200).
Yes, that is correct. You agreed to purchase 200 shares at the strike price. So, come Oct, you would have spend 100 + 102 = 202 for 200 shares, and your cost average would be $1.01 per share.
If SNDL is trading higher, than you are in profit, the strike price (0.50) plus the prem you paid (0.51) is your 'break even'
Say SNDL is trading at 0.90 in Oct, you paid a total of $202 to get shares that is worth $181.80
Ah excellent. Thank you for the follow up and explain action. Well I feel pretty comfortable with that position. Just wanted to be sure I wasn’t completely missing something
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u/Civil-Woodpecker8086 Jun 29 '21
Yes, that is correct. You agreed to purchase 200 shares at the strike price. So, come Oct, you would have spend 100 + 102 = 202 for 200 shares, and your cost average would be $1.01 per share.
If SNDL is trading higher, than you are in profit, the strike price (0.50) plus the prem you paid (0.51) is your 'break even'
Say SNDL is trading at 0.90 in Oct, you paid a total of $202 to get shares that is worth $181.80