Replies to post #7721 on Ford Motor Company (F)

[LifeCreator]

Couple more figures needed to be sure.

[DOA]

Your wrong. If the price of F is $10.50 at close on Jan 21 and you own $10 strike calls your option would be worth 50 cents.

[farooq]

One call equal to 100 shares so you paid 146 + commission if on 21 Jan price is 10.50 your call will be worth 50 Cents so you will get 50 $/ Contract.
Hope it help. if price is 12.50 you will get 250 per contract.
Option is a wasting asset, it lose value every day.
You need to be correct on 3 things, 1- direction of stock, going up or down.
2 Exact time move will happen, you bought option for one month but move took 3 months to reach strike or target price. You probably will lose all or a lot.
3- Magnitude of move