(TITLE SHOULD BE "BUY OPEN" and "BUY CLOSE")
So for an example:
If I "buy open" 1 call option of stock XYZ at following:
-strike price: $100
-contract price: $2
-expiration date: 3/1/2018
if I "Buy close" 1 call option of stock XYZ at following
-strike price is $200
-contract price is $3
-Expiration date: 4/1/2018.
Then I can anytime between now and 3/1/2018, if I exercise both options, (regardless of what stock XYZ share price is), my profit would be following:
profit = (200-100)*100-(2+3)-(2 x broker fee)
profit = (strike price difference)*(1 option = 100 shares) - (total option contract price) - (broker commission fee)
Is this correct?
Submitted February 13, 2018 at 12:24PM by niggawiggahigga http://ift.tt/2nWZ2rg
