call option 2 $ FFAI

 A call option give you the right but not obligation to buy share at the strike price or before expiration. 

You pay a premium the price shown on 0.31 or 0.01 for this right

Each option contract controls 100 shares so you multiply the premium 100 to see the total cost 

0.31 x 100 = 31 for cost one for 2 $ call 

2 dollar call 

• You purchased an FFAI $2 Call option on 8/29 for $0.30 per contract ($30 total since 1 contract = 100 shares).

• Options are just like stocks in that you can sell them any trading day before expiration — you don’t have to hold until expiration.

• As long as the market is open (Monday–Friday, normal trading hours), you can sell your call option to another trader if there’s market demand (someone willing to buy it).

✅ So if today is 8/29 (purchase date), you can sell it on Thursday 8/31 or any later date before expiration.

⚠️ Just remember:

• The price you sell for depends on FFAI’s stock price movement and option demand.

• If FFAI goes above $2, your call option may increase in value.

• If it stays below $2, the option may lose value as time passes.

👉 Do you want me to also explain what your profit or loss would look like depending on FFAI’s price by Thursday?

You said:

yes

ChatGPT said:

Perfect 👍 Let’s break it down step by step so you can see how your FFAI $2 Call could perform by Thursday (or later).

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🔑 Quick Recap of Your Option

• Contract: FFAI $2 Call

• Buy Price (Premium): $0.30 per share ($30 total for 1 contract = 100 shares)

• Expiration: (Not shown in screenshot, but most likely a weekly/monthly option. Let’s assume soon.)

• Breakeven Price: $2.00 (strike) + $0.30 (premium) = $2.30

This means you only profit if FFAI stock is above $2.30 by expiration.

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📈 If FFAI stock goes up

• Example: If FFAI rises to $2.50

  • Option’s intrinsic value = $2.50 – $2.00 = $0.50

  • Your option could trade around $0.50 (maybe higher with time value).

  • If you sell at $0.50 → $50 total – $30 cost = +$20 profit (≈ +67%)

• Example: If FFAI rises to $3.00

  • Intrinsic value = $1.00

  • Option might be worth around $1.00+ (=$100 per contract).

  • Profit = $100 – $30 = +$70 profit (≈ +233%)

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📉 If FFAI stock stays flat or goes down

• Example: If FFAI stays around $2.00 or lower

  • The option stays out of the money (OTM).

  • Value might drop below $0.30 → maybe $0.20 or $0.10 as expiration gets closer.

  • If you sell at $0.10 → $10 – $30 = –$20 loss

• Example: If FFAI drops to $1.50

  • Option has no intrinsic value.

  • Price might fall close to $0.05 or $0.00 near expiration.

  • You’d likely lose most or all of your $30 investment.

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📝 Key Things to Remember

1. You can sell anytime before expiration — you don’t need to wait.

2. Profit depends on how much above $2.30 the stock moves by the time you sell.

3. If the stock stays under $2, your option will probably expire worthless.

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👉 Do you want me to also track FFAI stock price this week and show you if your option is gaining or losing value each day?

You said:

if i don't sell on 29 august it will automatically sell off my stock at any prices ?

ChatGPT said:

Good question 👍 — this is really important to understand.

Here’s what happens if you don’t sell your call option by expiration:

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1. If your call is Out of the Money (OTM)

• Example: FFAI stock closes below $2.00 at expiration.

• Your option has no value.

• It will expire worthless, and you just lose the $30 you paid.

• Nothing is automatically sold in your account.

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2. If your call is In the Money (ITM)

• Example: FFAI closes above $2.00 at expiration (say $2.50).

• Your broker may do one of two things depending on your account settings:

  🔹 Cash-settled (common in small accounts): Your broker may automatically sell the option at its final value, and you just get the profit in cash.

  🔹 Stock assignment (less common if you don’t have enough cash): Since 1 call contract = 100 shares, you’d technically be buying 100 shares at $2 each = $200 cost.

  • If you don’t have $200 in your account, most brokers will automatically sell the option before expiration to avoid putting you into a margin issue.

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✅ So to answer your question:

• No, it will not automatically sell at any random price.

• If it expires OTM (below $2) → it just goes worthless.

• If it expires ITM (above $2) → your broker will usually either sell it automatically or assign you 100 shares (only if you have enough money in the account).