forextrade1970
05-01-2005, 03:18 PM
Hello i want to trade options but my software gives me a long position on a specific instrument and i don't know how to calculate the option's prices. For example: Instrument: AFSILong: 11.55Stop loss 3.35Target: 22.5Is there a calculator to help convert stock's price to option's prices?Thanks
Bumblebee2543
05-11-2005, 11:28 PM
It doesn't sound like your program is offering options trading, nut short and long selling. Long and short selling is different.In options trading you would have a clear options price (or call) and an expiration date. The call is what you pay for it (not counting fees). If the call is $5.00 you would pay $5.00 for each share of a stock prices at say $20.00. The price would have to reach $25.00 by the expiration date or the option is worthless and you loose the investment. If it increases above the $25 you could sell it or keep it in hopes that it would increase further.
dubak00
05-22-2005, 07:38 AM
You can't convert a stock price to an option price. They don't work the same way. A stock could be priced at $25 and have multiple call options at all kinds of different prices. I hope you are not putting any real money at risk as you clearly do not know much about options trading. Do your homework before you get started.