BEAST Coast Traders

What I Trade Call Options- A call option is an agreement to buy 100 shares of a stock at an agreed price (strike) on or before a specific date (expiration date). Your conract increases in value when the stock goes up. Put Options- A put option is an agreement to sell 100 shares of a stock at an agreed price (strike price) on or before a specific date (expiration date). Your contract increases in value when the stock goes down. To make it easier to understand- Picture an options contract as a contract that says 'You can buy (CALL) or sell (PUT) 100 shares of $ABC at this specific price (strike price) on or before this date (expiration date) BUT you dont have to.' EXAMPLE 1>>>>> $TSLA is trading at 195.50 and basesd on the charts and my analysis, I believe the stock is going to continue up. I purchase a CALL option on $TSLA with the strike price of $200 and the expiration date of 12 July '24. The contract cost 2.50 (This costs $250. You have to multiply 2.50 x 100 shares). 15 minutes later, $TSLA is trading at 197.75 almost a 3 dollar move. Your contract is worth around 3.25 - 400 ($325 - $400). you sell your contract and keep the profits. EXAMPLE 2>>>>> $NVDA is trading at 124.50 and based on the charts and my analysis, I believe the stock is going to continue down. I purchase a PUT option on $NVDA with a strike price of 120 expiring 12 July 24'. The contract costs 1.40 ($140) 15 minutes later $NVDA is trading at 121.20. Your contract is now worth 2.60 - 3.10 ($260 - $310). You sell your contract and keep the profits.