I just got into options, using Robinhood, and have a quick question
- I bought 15 contracts of a BAC put at $28 share price
- it says there is a break even price of $27.72
- the stock opened at 28.52, and ten minutes later it went down 1.47% to 28.06
- my option then said I made a 50% profit, and I could sell it right then
But how come I made a profit, and could of sold the entire thing at 50% profit, given the stock had not reached the 28 price, nor the 27.72 price? It just seems that I can buy cheap options, wait for the price to move 1-2% and cash out for 40-80%.
Submitted June 26, 2018 at 10:56AM by Vehn2 https://ift.tt/2tEqIDa
