Options!

One option contract is worth 100 stock. So if I buy a 135 put option with a strike price of 2.15, then I pay 2.15*100?

If that I exercise that option at 135, do i effectively hold 100 shares at 135 or 100 *contracts* at 1.35? Logic points to contracts. For example a 135 put at 2.15 would give me the right to buy stock at a profit of(2.15-1.35)*100)=$80 (38%). Is this right?

Can someone tell me what I'm missing here?

Even this doesn't seem right when I consider other factors that move the prices of options.

For example, Vega.
If the profit I get upon exercising before expiration is dependent on the price of the option, does that mean that a rise in volatility will postitively influence a call, while negatively influencing a put?

I haven't researched the greeks and how the function yet. I'll do that tonight.


thanks in advance

Ooooh-la-la, this is so VERY confused. Starting with this statement, which makes no sense whatsoever:

sark_anZas said:

One option contract is worth 100 stock. So if I buy a 135 put option with a strike price of 2.15, then I pay 2.15*100?

Click to expand...

yeah, i'm lost. :X

i know that much already.

My mistake, I meant a strike price of 135 for 2.15 a contract

Simple questions:
1. What's the strike of the options?
2. What's the current price of the underlying stock?
3. What's the price you pay per option contract?
4. How many option contracts have you bought?