THE STOCK MARKET: Options Contract Breakeven Price

Note: I am not an expert. This is information that perhaps should be learned prior to working with an expert. THE BUYING SIDE OF THE GAME Let’s say that a call options contract costs $0.40 cents per contract. Since options contracts are sold in groups of 100, the net purchase price of the contract isContinue reading “THE STOCK MARKET: Options Contract Breakeven Price”

THE STOCK MARKET: Call Options

THE MATHEMATICS OF OPTIONS TRADING : Let’s first consider a scenario where a single share of stock valued at $100.00 is purchased and subsequently sold at some later date. If this single share of stock increases in value by $6.00, a 6% profit will have been made if the stock is sold for $106.00, neglectingContinue reading “THE STOCK MARKET: Call Options”