To: E. Pluribus Unum
I calculate $0.09 x 50,000 as $450. Why am I three-orders-of-magnitude off?Options are for 1,000 shares of stock. So, one option at $0.09 is $0.09 times 1,000, so it costs you $90 for that option contract at $0.09.
19 posted on
01/22/2015 6:37:15 AM PST by
IYAS9YAS
(Has anyone seen my tagline? It was here yesterday. I seem to have misplaced it.)
To: IYAS9YAS
100 shares per options contract, not 1,000
22 posted on
01/22/2015 6:40:24 AM PST by
PapaBear3625
(You don't notice it's a police state until the police come for you.)
To: IYAS9YAS; E. Pluribus Unum
Sorry, options are for 100 shares, not 1,000. The coffee hasn’t kicked in. So 50,000 contracts at $0.09/share is 5,000,000 times $0.09 or $450,000 (not including commission).
24 posted on
01/22/2015 6:40:45 AM PST by
IYAS9YAS
(Has anyone seen my tagline? It was here yesterday. I seem to have misplaced it.)
To: IYAS9YAS; expat_panama; Toddsterpatriot
Mate, oppies represent 100 shares (or units, in the case of exotics) unless expressly stated otherwise.
Thus, 1 option @ 0.09 = $9.00, and 50,000 @ 0.09 = $450,000. The article's value calc is absolutely correct (well, plus commission, of course).
Now, this trader...well, sounds like he's playing w/someone else's capital. His position isn't really trading; it is gambling at its purest.
33 posted on
01/22/2015 7:06:14 AM PST by
SAJ
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