Just sinking my teeth into options in the past week, coming from futures and forex/equities trading for several years, just had a quick question to make sure I understand how this works.
I can buy a $26.35 CALL option with a strike price of 150 on NFLX expiring in January 2019 for $2,635, and that will get me 100 shares of NFLX? Then I can just sit on it and wait until January 2019 for it to mature?
And if and when it does, even before that time, I can scale out and sell off shares one by one if it goes above the $150 mark?
Do people do stop losses on long term options like this?
If I wait until January 2019 to sell them all and NFLX is trading at $300 at that point, I can sell them for $150 each, thus netting $150 on each stock? Hope this makes sense, just trying to wrap my brain around options.
Submitted April 15, 2017 at 10:07PM by Tee_Money http://ift.tt/2pEqDfj
