BioSante Pharmaceuticals, Inc. (BPAX)

[dgras0007]

Each option contract means 100 underlying shares. Meaning if you buy 10 contracts you have the right to buy 1000 shares. I am bullish on the stock and look at option activity. I just bought 40 March/0.50 cent contracts for 0.14 cents which carry a value of $560 dollars. If by March let's say this is 1 dollar your option will be worth roughly the dollar minus what you paid for the option in this case if I paid 0.14 cents my option would be worth 0.86 cents. so I can sell my 40 contracts multiplied by 86 for a total of 3440. So I invested 560 and would make 5/6 times my money. Now if by March this is below 0.50 cents then you lose your money. But I highly doubt this will be the case.