options question

No. I don't believe so.

Correct, no pre or after market trading for options.

Dont want to start a new topic concerning options, but got a question.
Example: Call option MSFT (Strike price 19) Feb09
Option costs 0,3

Suppose you have $3000 in your account how many of them can you buy.
can you with 3000 buy like 10000(=10000/0,3)?


Maybe an explanation with it, contract per 100?? Ty very much

What's the ask price? It looks like it is .28 and a contract is for 100 shares, so it would be $28 for a contract. 3000/28 = 107 contracts, not including commissions.

So 1 contract costs 0,28ASK and you have the right to buy 100 shares??

cause you state i can buy 107 contracts but with 3000$ You can never buy the underlying stock?(100shares x 107 contracts=10700)

I'm just referring to the contracts, not the stock. If you want to exercise the options, you need to have enough for the stocks too.

Exercising the option isn't necessary to make money. Just trading the contracts can be very good $$.

you dam europeans and your comma decimal places. its 0.28 . 100 msft calls, pretty big position. maybe he knows something Lol?

No, was a pure theoretical example. Learning options

My broker only allows me to trade with 0.05, 0.10, 0.15 so i cannot trade 0.06.
If i want to buy a call and ask is at 0.09, I must place a limit order at 0.1. Will i buy at the ask or someone sells me at my limit??
TY

I would find a better broker. There is no reason for the 5 cent jumps, especially when you have fast moving options that trade within a penny or so of each other.

Bishop, not all options trade within pennies. There is a list somewhere, gotta find it, that has the ones they are trying to do it with. RIMM is one of them I think, along with a lot of the other liquid and popular stocks.

Yep thats why you see some options that never go below .05

I realize that, but if your broker is requiring an even 5 cent increment on spreads that aren't 5 cent equivalents, that's ridiculous.

In the case of the poster's question using the example of 9c on the ask, having a broker require 10c order in order to be placed is absurd.