edruschie: sry i dont understand but i do not play
options
MMASSASSIN: options trading on stocks is a
different game, maby U shuld read up on it. I think
its important for all traders to get atleast an
understanding of what options trading is , becouse
options and there expirations afect stocks greatly
edruschie: what would be a good place to go
learn?
MMASSASSIN: thats why U see some big voletile
moves on option expiration firadays one friday out
of every month, becouse of covering and the
reason that 1 contract controlls 100 shares of
stock, so a smaller amount of options affect a
huge amount of stock
edruschie: so 110 is 1 10 blocks of stock
MMASSASSIN: im not sure, if you gogole it im
sure you can find a lot of sites
MMASSASSIN: no 110 is the target price of the
call
edruschie: ok thanks
edruschie: u want it to go up
MMASSASSIN: put it like this I bought options of
110 call december AAPL stock, so if by friday AAPL
dose not reach 110 thease calls are worthless that
is vhy thease calls are now so cheap, there only 10
cents
MMASSASSIN: but if the stock goes to 110 then
thease calls can go up as high as2.40 or so
MMASSASSIN: so in other words 2400% percent
profit if it reaches that high by friday on the
entery I did today
edruschie: if they dont u loose .10 per call price
MMASSASSIN: but it if goes up to just 100
bucks then thease calls shuld stil triple from 10
cents, see its all about time and target
edruschie: ok thanks
MMASSASSIN: i bought the calls for 10 cents so
if for instance AAPL goes down or stays at this
level as we get closer to friday and the likely hood
of it reaching 110 gets less probably then the
options price wil keep degrating til its eventualy
worth nothing, but r
MMASSASSIN: remember I can sell at any time ,
just like U can sell stock at any time