Options for dummies

  1. 285 Posts.
    Hey all. I’ve been trading stocks, forex and cfd’s for a while. And they’re pretty easy to understand. Buy low, sell high or buy high, sell low for shorting.

    I want to get into options trading though. I get the concept of a call and put. And I get How options are profitable. What I don’t get is when to enter.

    let’s say there’s a stock trading at $1. Now let’s imagine there’s call options with strike prices at 80c and $1.10 both expiring in 30 days.

    lets also assume that the stock is rising.

    my question is. If I bought the 80c call options when the stock price is at $1 will I be in positive territory. Or should I buy the $1.10 call options when the stock price is at $1 to show a profit.
    Last edited by cyberdeth: Clarifications 14/04/20
 
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