mimi asked:


I think I understand the basics of option trading like calls and puts. What I need help is why an option May put has a strike price of 55 when it’s underlying stock is at 52.03 in Feb? Isn’t the put for buying it down?

netchant168 asked:

for example: if i buy a call option with strike price of $60 expired in sept 2008 for $4. the stock price currently is $30. Two days later, the price jumps to $48, and the price for my call now is worth $6. what should i do with the call option? can i sell it back to the writer and get the $2 proift even though it is out of the money?