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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe)
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To: Jay Baca who wrote (541)1/3/1998 4:25:00 PM
From: MJR  Read Replies (3) of 2241
 
OK..here's another basic options question..

1) Say I buy 4 CALL contracts for XYZ with a purchase price of $1. Thus, I put out $400. Forget commission charges in this example.
Then, one week later, the CALL is priced at $2. Can I simply sell the 4 CALL options at a $400 profit, or is there something else I must do?

2) Do most brokers charge their commission charge both on the buy and the sell, just as they do when dealing with regular stocks?

Thanks in advance,

Mike
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