Simple equity option question?

lets assume company X have a current stock price of $3.95

the sep20 $5 calls are trading at 0.25/0.30

if i want to buy ONE opportunity contract it will cost me...(100 shares * 0.30)= $30.00?

in command to make money on the trade, the price of the underlying will enjoy to be > $5.30 at the time of expiration?

the implied volatility of this option is 74.65 ... to be precise pretty high correct?

thankfulness vm for all your give support to

Shares...Info??



Answers:   All correct - however...

Assuming you are talking roughly exchange traded options, you will be capable of close out your position by selling one contract at any time you want. So if, say like contract is trading at 70cents in August, you don't enjoy to wait until Sept but can provide now at $70 and sandbank a $40 profit.

74.65 is high volatility - yes. Stocks are incredibly volatile presently.

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