what stocks do you trade daily?

[chittiR]

on 20-30k

[Tesla_Elon]

@Vaampire @Spartan 

scenario:

1) brought 3 call options of FCEL each at 4.50 with expiration date Dec 18th.

2) Current Market share price 9.75

3) break even/strike price 8.50

4) current contract price 5.75

My options:

1) Since the current market share price is above my break even i can sell my options and make a profit of (5.75-4.50)*300=375.

2) I can buy 300 shares of underlying FCEL stocks each at $4. In this case i will spend 4*300=1200+ initial premium paid (1350). Total amount spent would be 2550.

3) After buying the underlying stocks if i sell them at market price of 9.75. I would get back 9.75*300= 2925.

In either case i make the same profit. When I researched on google it said if I exercise my options i.e buy the underlying stocks before expiry i will loose the extrinsic value. Nenu konni videos chusa kani naku ee extrinsic values concept ardamkaledu. 
Can you help me understand this concept taking the same example i would appreciate your help. 

[Vaampire]

2 minutes ago, Tesla_Elon said:

@Vaampire @Spartan 

scenario:

1) brought 3 call options of FCEL each at 4.50 with expiration date Dec 18th.

2) Current Market share price 9.75

3) break even/strike price 8.50

4) current contract price 5.75

My options:

1) Since the current market share price is above my break even i can sell my options and make a profit of (5.75-4.50)*300=375.

2) I can buy 300 shares of underlying FCEL stocks each at $4. In this case i will spend 4*300=1200+ initial premium paid (1350). Total amount spent would be 2550.

3) After buying the underlying stocks if i sell them at market price of 9.75. I would get back 9.75*300= 2925.

In either case i make the same profit. When I researched on google it said if I exercise my options i.e buy the underlying stocks before expiry i will loose the extrinsic value. Nenu konni videos chusa kani naku ee extrinsic values concept ardamkaledu. 
Can you help me understand this concept taking the same example i would appreciate your help. 

@Tesla_Elon i am new bee to options.

@pandemkodi plz help

[pandemkodi]

3 minutes ago, Vaampire said:

@Tesla_Elon i am new bee to options.

@pandemkodi plz 

usually I will sell in the money ones and go buy otm  (10 or 11 or 12) calls for Jan if I think it will go up further .I did same for nio. . 
 

selling or exercising will give same profit unless you plan to keep them long term . 

[Tesla_Elon]

46 minutes ago, pandemkodi said:

usually I will sell in the money ones and go buy otm  (10 or 11 or 12) calls for Jan if I think it will go up further .I did same for nio. . 
 

selling or exercising will give same profit unless you plan to keep them long term . 

Okay, Thank You. Since I have little more time for the expiry and think the data looks good on the company i was thinking to wait a little longer and sell my contracts. 

[Tesla_Elon]

57 minutes ago, Vaampire said:

@Tesla_Elon i am new bee to options.

@pandemkodi plz help

Thank you

[chapstick]

Evaraina options lo expert unte chepandi bhayya.. I want to learn.. theory is different and when it comes to practical it’s diff .. so want to be cautious and want to know wat I am dng before getting in ..mainly 

calls

puts

debit spreads 

selling options 

iron condor

straddle strangle

 

[pandemkodi]

33 minutes ago, chapstick said:

Evaraina options lo expert unte chepandi bhayya.. I want to learn.. theory is different and when it comes to practical it’s diff .. so want to be cautious and want to know wat I am dng before getting in ..mainly 

calls

puts

debit spreads 

selling options 

iron condor

straddle strangle

 

I am no expert but you need to get your hands wet then only you will gain some expertise. The more money you ooose more exp u gain . 

[chapstick]

30 minutes ago, pandemkodi said:

I am no expert but you need to get your hands wet then only you will gain some expertise. The more money you ooose more exp u gain . 

Can’t afford bro.

[Vaampire]

29 minutes ago, chapstick said:

Can’t afford bro.

U shouldnt be trading bro.....

rule no 1 in stock market. Invest certain amount of money which u dont mind loosing. 

[chapstick]

13 minutes ago, Vaampire said:

U shouldnt be trading bro.....

rule no 1 in stock market. Invest certain amount of money which u dont mind loosing. 

Ya.. that’s why want to know how options works ..for now only shares which I know ..gng with 10k profit ..