This is the price you pay for the contract. Note: One option contract usually controls 100 shares . If the premium is listed as $2.00, the contract will actually cost you $200. 4. Place Your Order When you’re ready, you’ll select "Buy to Open."
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If the stock moves in your favor and the option's value increases, you can "Sell to Close" to pocket the profit.
The price you think the stock will hit (e.g., "I think NVIDIA will hit $150").
