What does buy apple call at $123 Expiration August 7 mean?
It means that you’ll buy Call option of strike price $123 that expires on August 7. So, if the price of Apple is greater than $123 on the day of expiry, you’ll make money. (Assuming it is european options. For american options anytime it crosses $123 you an exercise the option).
Of course to actually make profit, the price should be greater than $123 + the premium paid.
Thank you ak89! I am new at Option trading and wanted to understand more before I invest my money…
By the way, what is the price of Apple $120 put expiration August 7?
Sorry for asking too much.
Thank you
Just checked nasdaq site…There is no august 7 expiry option. http://www.nasdaq.com/symbol/aapl/option-chain
The price keeps on changing during the day. You could check it out in your brokers charting tool.
This pdf, though in the context of Indian markets, is very easy to understand. http://www.nseindia.com/content/ncfm/sm_otsm.pdf