I'm new to option trading and I have a few questions about it.
From what I read, call option is when you have the ability to buy at the strike price, and put option lets you sell at the strike price.
Suppose a share is trading for $10. Is it possible for me to buy a call option for $8 and immediately sell and profit, or can I only buy calls above the current price and puts below the current price?
I also noticed that options have bid and ask prices that change over time. So are options like shares, in the sense that you can trade them without exercising?
Also, what is a ballpark for how much I should expect a call to cost? Say I have $2000 to invest, how much should I expect to pay for a call option for a strike that's not too much above current price?
Submitted June 01, 2017 at 10:17PM by LAN_of_the_free http://ift.tt/2qGlRPm
