Covered Call/Protective Put..what am I missing?

[geo]

@SpareTime

Also, noob question here…I haven’t traded options before so I’m ignorant with commission prices. One I’m seeing is 9.99+1.25 a contract. When they say a contract, do they mean per option? Because that is ridiculous…how could a person ever use options on a sub $10 option when you’re paying 13-50% commission right off the top? I really hope I’m understanding this wrong…

1 contract = option on 100 shares. Quoted price is per share. So an option quoted at $1 will cost $100 per contract. If you want exposure to 1,000 shares you buy 10 contracts.

[SpareTime]

@geo

@SpareTime

Also, noob question here…I haven’t traded options before so I’m ignorant with commission prices. One I’m seeing is 9.99+1.25 a contract. When they say a contract, do they mean per option? Because that is ridiculous…how could a person ever use options on a sub $10 option when you’re paying 13-50% commission right off the top? I really hope I’m understanding this wrong…

1 contract = option on 100 shares. Quoted price is per share. So an option quoted at $1 will cost $100 per contract. If you want exposure to 1,000 shares you buy 10 contracts.

Ah ok. That’s considerably more reasonable lol.