Buy 40 Contract(s) of the 20.00 Call on SOLF (QFG ID) at Market Open price
At a premium of $2.45 per share (100 per contract), the value of of this transaction is estimated at $9,800.00, plus commissions of 89.99, for a total of 9889.99. This value may however change with MarketOpen Price when exchange opens on next business day.
so does this mean my break even point is $22.45?
how do i make money with options… if it goes to $25 what percentage gain would that be?
this is just an example… i will study & use a practice account for the next 6-12 months before i rally take a go at it
Yes, if
(1) you hold the position until expiration and
(2) you ignore commissions.
<<
If you hold it until expiration and the stock is at $25 at expiration your options will be worth $5.00 per share, giving you a profit of $2.55 per share, or a little over 100%.
<<
You should study and use a practice account, but do not commit yourself to starting at a set time unless you are comfortable that you understand options at that time.
————–
In my answers I specified “at expiration” because prior to expiration the option premium consists of two parts, the intrinsic value and the extrinisic value. (The extrinsic value is also sometimes called the time value.) At expiration the extrinsic value will be zero and the exact value of the option is known. Prior to expiration the extrinsic value will be greater than zero, but exactly how much greater depends on the implied volatility of the option. (The implied volatility of the option is essentially the amount of volatility expected in the stock price.) So, prior to expiration your breakeven price will be less than $22.45.
———-
I strongly encourage you to read at least one or two good books about options as part of your course of study. There are some excellent web resources, such as
http://www.cboe.com/LearnCenter/default.aspx
and
http://www.optionseducation.org/
I suggest you check if you haven’t already, but they do not teach you as much as a good book will. They may, however, teach you enough to pick out a good book.
How can I screen stocks with the largest daily range in dollar amount, not in % ?
We have a paid stock picking service and a free stock picking group on Yahoo.
"Many happy returns" going into Thanksgiving 
Is this good?
Am I getting lucky?
How can I improve my profits?
Or cut my losses?
Should I diversify more?
How can I improve?
http://spreadsheets.google.com/pub?key=pwSwpofVUuiGtCGFTfg1SUQ
The challenge is that these trades may not have been executed because only a live market can determine the price.
Next, you have to add up how big is this portfolio? Do you have these assets, and then there is the question of margin.
I did this for a number of years before trading a single dollar. It helped, but there is a big difference to paper and real money, and real time.
Thx a lot.
Both should be avoid by beginners. Be an investor, not a speculator.
http://www.fairmark.com/capgain/
You can choose how much of the material you want to read, but I suggest you be sure to read the section on "wash sale" rules given the way you described your trading.
If I buy stocks worth of 10K today and sell them off later in the day, making a profit just say of $10,500 and I want to trade the next day using those funds…will I be able to use tht money? or do I have to wait like 3 business days?-I am not on margin or options.
Thanks.
even if i buy the same stock?
like if i buy and sell apple today..can i buy apple tomorrow using those funds?
You will need a broker to make stock trades for you but different types of brokers will charge different amounts. Full-service brokers will provide you with a lot of advice. However, their commission rates are much higher than the ones from discount brokers, who only make the transaction of the trade. Personally, I prefer discount brokers because they are cheaper and they allow me to make my own decisions.
I currently use Firstrade ( http://www.firstrade.com/ ). I prefer them over Scottrade because they offer free dividend reinvestment (DRIPs), which is essential for long term investments. They also have slightly cheaper commission rates and much lower commission rates when compparing to ther big name brokers such as Etrade, Ameritrade, and Schwab. Their customer service and website are great as well. I would definitely recommend that you check them out.
If you aren’t comfortable with your invest skills, instead of getting a full-service broker, I would suggest that you try mutual funds. Mutual funds are diversified, thereby less risky. They are also professionally managed so you don’t have to worry about what to buy or sell. To learn more about mutual funds, you could visit Investopedia ( http://www.investopedia.com/ ).
I found the answers I was looking for at this site – http://www.traderstatus.com/whyanentity.htm
Depending on what you invested in, you could have to register with the SEC. Additionally, you would be signing up for double taxation! You would have to pay additional legal and accounting fees, and could have your quarterlies audited by the IRS.
There are absolutely no advantages to this scheme. Never mind that if you tried to become a trader for a living, you would become homeless, as more than 90% of "day traders" lose more than 2/3 of their capital in the first year.
Not to mention that this would look a hell of a lot like money laundering to an outsider (someone who creates a shell holding corporation to avoid having his name attached to the movement of significant amounts of cash moving across state lines is a pretty good way to meet some kind agents from the FBI).
It's never a good idea to try to outsmart the federal government – sure, they might not be the smartest bunch in the room, but they sure know how to hold a grudge.
there are plenty of other books but you need to first figure out what you're going to specialize in – I trade mostly forex, but you might try futures or some people are even still trading stocks nowadays