ilmscore | Prediction Details
"scenario number four the price of Intel shoots up so you bought Intel at 32 Intel shoots up let's just say from 32 to 40 so you have to remember that you sold me the option to buy Intel from you at 34 within the next 2 months and it shot up to 40 so you know what I'm going to do you know what I'm going to do with the call option that you sold me I'm going to use it I'm going to exercise it I'm going to buy Intel from you at 34 and I'm going to sell it on the open market for 40 so even though the price of Intel shot up to 40 you are forced to sell it to me for 34 so that was the contract that was the deal I paid you $150 for that option so you bought Intel at 32 you sell it to me for 34 so you make $2 of gain on the stock and I paid you $150 to buy that call option from you so you make a $150 there you walk away with a gain of 350 in total that's an 11% gain in 2 months annualized that's a rate of return of 66%"
By ClearValue Tax | October 15, 2023 | Pending
From video
Options Trading For Beginners: Complete Guide with Examples 00:19:34 - 00:20:38
Interpreted Prediction
If Intel stock rises from $32 to $40 in two months, selling the call option limits the gain. The profit is $2 on the stock ($34 sale price - $32 purchase price) plus the $150 premium, totaling $350, an 11% gain (66% annualized).

Prediction Details

Ticker
INTC

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