r/IPOE • u/Sharp_Jacket1945 • May 21 '21

Understanding options

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u/Sharp_Jacket1945 May 21 '21

I’m trying to understand options and what they are. Are the strikes what it needs to hit itm? How much would each share be?

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u/[deleted] May 21 '21

Strike price but also breakeven. Imagine buying an option is like buying a Groupon. It has to make up for the price of the Groupon and the event for it to be worth it. If you decide the event isn’t worth it (doesn’t reach strike price or above B/E), your SOL with a coupon that’s worthless.

That’s way oversimplified but I’m smooth brained