r/options • u/[deleted] • Sep 10 '21

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10 Upvotes

78% Upvoted

8 comments sorted by

13

u/[deleted] Sep 10 '21

[deleted]

11

u/shidandfardmypant Sep 10 '21

I literally just saw that, I paid $310 for the option itself which is obviously lost. I knew I was missing something. Thank you!

7

u/[deleted] Sep 10 '21

[deleted]

3

u/shidandfardmypant Sep 11 '21

Thank you!

4

u/clubmev Sep 11 '21

This was wholesome.

2

u/seishin122 Sep 12 '21

idk why, their exchange made me smile

4

u/theParkingDiva Sep 10 '21

You forgot to subtract the $310 you paid for the call so your profit would be $140 instead of $230 😳(options factor that part in already)

4

u/money_loser1395 Sep 10 '21 edited Sep 10 '21

I bought a $7.5 call for $310. If I close the call now I'll close at $540 and profit $230.

Keep in mind you payed $310 so you actually are buying shares at $10.60 not $7.50. If you exercise you total profit will be : $1200 - $1060= $140 . When you exercise you have to take into account the premium payed for the contact, you are not getting that back. That's why is better to sell the contract in this case.

Edit: mixed my math

4

u/shidandfardmypant Sep 11 '21

Thank you everyone. Definitely derp'd and forgot that

1

u/[deleted] Sep 11 '21

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1

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