Option Millionaires

[samedison]

No, it don't work that way. Had you sold at that one point You are talking about, you would have made that $25 profit as mentioned in your account gain/loss column.

You can sell for profit at any given point of time before option expiration date, even though the option don't hit the strike price(Unless option expires). Thats called time value. What ever you are paying for the strike price above current market process is you are actually buying the right to buy the stock at that price in anticipation that stock goes up above strike price and time value of option.


Watch some good basic option videos and read articles with good examples. It will give you a better idea.