Real-time sample of Profit update
Dear Ms. ? , daily update on your options.
the details of your Bank of America (BAC) $37 call option:
- Average Cost: $3.65
- Current Price: $4.65
- Contracts: 1
- Market Value: $465.00
- Total Return: +$100.00 (27.4%)
How we earn you profits:
When you buy a call option, you're buying the right to purchase shares at a specific price (the strike price) before the expiration date. The value of your option increases if the stock price rises above the strike price because the option gives you the right to buy at the lower price.
In this case:
- Your purchase price per contract was $3.65, meaning $365 for one contract (since each contract typically represents 100 shares).
- The current price is $4.65, so you could sell it for $465.
- Your profit so far is $100.00.
If close this option now:
If we decide to sell the option today at the current price of $4.65:
- Profit: You'd make $100 (the difference between your purchase price and the current price).
To calculate how much you would make if you sold it right now:
- Selling Price: $4.65 x 100 shares = $465.00
- Purchase Price: $3.65 x 100 shares = $365.00
- Profit: $465.00 - $365.00 = $100.00
Even though we know BAC will continue to rise, holding on might increase your profit, but selling now would lock in a $100 gain. If you sell now, you will make a total of $465, including your initial investment, with a profit of $100. END OF UPDATE.
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Thank you.