✅ Big reward if stock jumps, but very risky—most likely you lose the $7 unless it pops above $2.57 fast.
📊 Example: $2.0 Call (Cost = $0.29)
- Strike price = $2.00
- Premium paid = $0.29 ($29 per contract)
- Breakeven = $2.29
✅ Costs more, but safer. You only need a small move above $2.29 to profit.
🎯 Summary
- $2.5 Call (cheap lottery ticket) → High risk, low cost. Needs a bigger move to pay off.
- $2.0 Call (expensive but safer) → More upfront cost, but easier to profit if stock rises slightly.
Do you want me to also show you step-by-step how to actually place the trade on your app (Buy → Select strike → Confirm) so you can practice with small contracts?
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FFAI Stock Price at Expiry |
Option Value (Intrinsic) |
Profit/Loss per Share |
Profit/Loss per Contract |
$2.30 |
$0.00 |
–$0.07 |
–$7 (lose full premium) |
$2.50 |
$0.00 |
–$0.07 |
–$7 (still worthless) |
$2.57 |
$0.07 |
$0.00 |
$0 (breakeven) |
$2.70 |
$0.20 |
+$0.13 |
+$13 |
$3.00 |
$0.50 |
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