8 x 8 INC (EGHT)

[Good Timer]

No. It means I bought the option to purchase 900 shares of EGHT at $17.50 until Jan of 2022.

Suppose on Jan 2022, EGHT is trading at $100 a share. I can still buy 900 shares of it for $17.50. In that case my profit would be $82.50 per share (and I would be very happy).

The good thing about options is that you can control a lot more shares than if you were to just buy the stock. For instance, EGHT was trading at about $21 a share when I bought my options, but I only had to pay about $6 a share. With more shares, there is the possibility of more profit.

The bad thing about options is that if they reach their expiration date and the stock is below its exercise price, you will lose all your investment.

You don't have to wait until the exercise date to turn in an option. You can always sell them anytime you want until, the exercise date, for whatever their worth is at the time.