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Lesson 4 of 8 · 2 min
Options: calls and puts
An option is a ticket. A call gains if the stock goes up. A put gains if it goes down. The most you can lose is what the ticket cost.
Try it
Stock is $100 today. The ticket's strike price is $100. It costs $5 a share, or $500 for one contract of 100 shares.
Your result
Your $500 ticket became$1,500
+$1,000 · +200%Call with a $100 strike, stock at $115 on expiry. What just happenedThe stock moved the right way, past the break-even price of $105, so the ticket is worth more than you paid.
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