All,
Purchase a 6/3 expiration call option for a $305 strike price. Right now the price per contract is between $.02 & $.03.
Your profit percentage potential is over 47k%.
If GME doesn’t go to the moon tomorrow before end of day we will place another trade for 6/10 expiration call.
These are stock options, not actual shares. Each options contract represents 100 shares of the stock. So if you buy one 6/3 expiration call option for a $305 strike price for $.03, then you will pay $3.00 ($0.03 x 100 shares) for the right (but not the obligation) to purchase 100 shares of GME at $305 on or before June 3rd. If you choose not to exercise your right by close of market June 3rd, your option expires.
Note: You need to fill out more paperwork to get your account approved for options trading. If you just started trading in stocks, they're gonna make you wait a few years before they let you trade options. It's easy to get wrecked with options.
I'm a long-term hodler but haven't played options ever. I get what you're saying, I think. Basically- if, tomorrow, the stock price jumps and is above $305, the option is in the money, correct? Then, to exercise it, you have to buy 100 shares at $305 (which is a good deal if the price is above $305). But that's $30,500.00. Is there a way to sell the call contract to someone else, if you don't have 30k sitting around? That's where I'm confused, because I am functionally retarded.
Yes. You don't have to exercise options. You can buy and sell them just like regular stocks.
I can’t count past 10, because that’s all the fingers I have, but where does the profit potential of 47k% come in and to be more specific what is the payout If you are in the money and can cover the $30,500.00?
Will make a blanket reply to all questions in a little while.