Quote:
Originally posted by lil2rich4u2
so in the above example the discussed, my contract expired and it did not reach the expected figures.
why do they say im left with my initial cost? Dont you lose everything if the options are worthless?
|
Because in the previous paragraph they were talking about the paper profits you had made as of May 21. They are saying you lost your paper profits and are back to your original position of owning the contract at an inital cost of $315.
They go on to say that the option being below the strike price at expiration renders it worthless, so you are out you initial investment (cost).