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CIBIR Corporation wrote:
> We you purchase an option on a contract you pay X amount of dollars for the
> option. Now once your option is "in the money", how do you calculate your
> profit? I have Metastock with Reuters and am trying to keep an eye on the
> profit that I am making while paper trading. I recently "bought" a
> December 97 370 Call, well today it went "in the money" and I am trying to
> figure out from the Returers info how much I "made" from this so far.
>
> Thanks
>
> Joe
A dec WHAT 370c ? Take the points the option is now worth -(minus) the
points you paid for the option X (times) the amount of contracts =
PROFIT, HOWEVER if you are trading commodites you have to do everything above
X the commodity point value. E-mail me directly or give the particulars of
your trade and I will walk you through it. I also will direct you to some
basic option material. You should have received CHARACTERISTICS AND RISKS of
Standarized Options manual from your broker. That would answer your ?'s
Give me your address and I will mail you one.
Ramon
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