Hello,
I have been researching and looking at various data concerning call/put options.
To better understand different scenarios I used a calculator that I found very detailed to better visualize many outcomes.
Call option Calculator:
https://www.optionsprofitcalculator.com/calculator/long-call.html
For 2 different scenarios I used the same stock price but with a different Strike.
I set a range from 120$ to 150$ and a expiration date of 09/20.
Call Option 1:
Stock price: 120$
Strike: 140$
Price: 0.67$x100
Call option 2:
Stock price: 120$
Strike: 130$
Price: 0.67$x100
What I saw on the graph stunned me, and I am now not quite sure if the calculator is wrong or I am.
For the first day of holding the option when hitting the 150$ mark would land in a significant higher profit when holding call option 2 instead of option 1.
So if that would be the case you would get less profit for more risk.
Now my question did I calculate it wrong or is there another mistake I am making?
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