Option Example Scenarios

I think the company's stock price will go higher in the next 2 or 3 months. How can I profit from this using options?

Place a call option (refer to the section "How to pick the right Call Option?" to pick the right option)

Today is the 1st of June and the company's Earnings report(can check in yahoo finance) is due tomorrow. I think the stock will go up. How can I speculate on this event using options?

Place a Weekly Call option to speculate on the Earnings Event(refer to the section "Weekly Options" for more details). If Weekly Options are not available on the stock, then you have no choice but to place a Standard/Regular Option.

As a side note, if the Earnings event is during the third week, you'll have no choice than to place a Standard/Regular Call Option since Weekly options are not offered during that week.

My call option just increased in value. Can I sell my call option now, even though it's before expiration date?

Yes

I have a call option but have losses. I think the stock might fall further. Can I close my position(sell to close- call option) to limit any further losses before expiration date?

Yes




Checkout our New Feature: The Million Dollar Feed