Sergio, questions on puts and calls, I just started looking into them. I will start with calls, Ill get to puts at a later date. My basic understanding is a call is the option to purchase a stock at a set price for a set time period (strike price and expiration date I believe are the terms used) The purchase price of the call, is called the premium. So lets say I purchased a July 35 call, this gives me the right to purchase 100 shares at $35 per share anytime before the July expiration date. I could also just sell the call at the current premium price. I use Discover Brokerage so I will reference what I see when I go to options chain on there web site . I only mention this because I do not know if the others look the same. As my example I will use Cable Design Technologies Corp., symbol CDT, for July 1998 calls this is what I see:
CDTGE Bid Ask Last Change Volume
July 1998 35 Call 6 6 1/2 0 0 0
CDTGC
July 1998 35 Call 1 1/8 1 3/8 1 5/16 -1/8 4
My questions are what does the GE and the GC stand for? Why are the bid and ask all about? What its the premium for these? And 4 on the volume? Can you only purchase them for 100 shares at a time, so does the 4 means 4 contracts at 100 per for a total of 400 shares?
Stupid questions maybe, but I dont know the answers.
P.S. On the preview post the bid, ask, last, change and volume info is not spacing the way it looks to me I dont know how to separate them, Hope you can understand it.
Joe
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