Options question

[siva604]

I bought 

AMC  3/5 call - Cost -2.28 [228] , Strike price of 9. 

 

Question:

If AMC is trading at 14 dollars on 3/4 , if i close/sell this option contract to market  what would be my profit?

My assumption is : 1400-900= 500 - my premium

Appreciate your answers and help. 

 

Thanks,

Siva

[DummyVariable]

You still spent 2.28 on the option. Excluding the time value, you are looking at 5$.. so should be around 270 profit plus any negligible time value.

[accuman]

19 minutes ago, siva604 said:

I bought 

AMC  3/5 call - Cost -2.28 [228] , Strike price of 9. 

 

Question:

If AMC is trading at 14 dollars on 3/4 , if i close/sell this option contract to market  what would be my profit?

My assumption is : 1400-900= 500 - my premium

Appreciate your answers and help. 

 

Thanks,

Siva

Your profit at AMC=14 is

 

1400-900-228

 

u r expression also right

[accuman]

Less of broker commission 

[mettastar]

Its not that easy.. extrinsic value depends on other factors like IV delta etc .. but as ur contract kind of deep itm extrinsic value may be less .. my opinion

 

But what u calculated is minimum you should get

[siva604]

Thank you all @DummyVariable@mettastar@accuman