Question: Help with understanding options trade

Discussion in 'Learn how to trade or invest by asking questions' started by Anush, Jun 2, 2017.

  1. Anush

    Anush New Member

    Hello all,
    Thanks in advance for your time and response.

    I'm fairly new to options trading. I've made a few trades but still trying to understand the details.
    I'm trying to understand from one of my recent trades on etrade.

    On Jun 1st, I bought a couple of call options (AVGO) expiring on Jun 30th. When I purchased the options the underlying stock price was $235 and options price was ~8.30 so I ended up paying ~1600$ and bought two contracts.

    The earnings the next day was pretty good and stocked popped. The price of the stock next day is $253 (as I type). The options price is 19.30$ and my total gain is $2300.

    Now my question is that why is my gain is not the difference of the stock price (253 - 235 = 17) times 200. (3400$) ?

    Also, is there a way I can exercise the options now?

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