Stock Mkt

October 16, 2008

i am confused about option trading in stock mkt?

trading puts calls
kumar asked:


i am still confused about option trading
I know when u r bullish about a stock ,u can buy call option or sell put option.
Suppose I think that a price of a stock is going to rise in a month or two. having decide to buy a call which should I buy—— There r a number of 1 month calls trading with different STRIKE PRICE. at which price shouldi buy
What IS the maxium premium that I will give ?
what is the maxium amount of stocks that I will buy in a lot? Suppose I buy at the lowest strike price what will be the premium?? What is deep in the money that trades at a higher premium What is out of the money that trades at a lower premium

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