hello everyone i am stock option beginner. i did a paper trade in call option. well i dont understand how far the stock can go in order to make a profit. here is the example.
stock xyz august call 200.
I bought the call option at $21 strike price is 200 stock price when i bought is 200 at the money.
so the only thing i want to understand is how far the stock price cna go to make a profit?
after many days the call option is 28. i made a profit of 700 dollars the stock price is $215
Now according to what i have read about options is that i will make a profit when the stock goes to 221 since i paid 21 for the call option.
well i am confused.
please help |