The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to actually look at another simple Apple call option example. We actually did this a couple of podcast back. I thought it was good, we could look at another one again here today and look at call options in Apple. Apple is a really popular stock. Everyone loves call options. We’ll look at it in two different cases. We’ll look at a simple selling of a call option and then we’ll look at option buying examples. And again, the idea behind doing this is just so you get at least some frame of reference for how this might work in the real world. We talk a lot in theory here about how option pricing works and how option contracts work, but sometimes it’s really important just to kind of get a real world example of what’s going on and what we could potentially do with an option contract. Remember that options are meant to be there to let you choose how you want your risk payoff diagram to ultimately look like.