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how did i profit


dumaman said: "Im currently playing around on investopedia simulator trying too learn options.. and played a qqqq call about a week ago it was qqq kr i think.. anyway the price moved a little in the stock and I profited ? How can i possible have profited if the price did not reach the strike price.?"

drdan said: "I love it more questions!!!! OK options are just like stocks their prices are not stagnant, they go up and they go down. You can buy or sell an option at any time. So you profitted because you bought the option at a low price and now it is at a higher price. You can sell it and profit. When I first started in options I had a small account, about $2K. I used to trade the Q's with out of the money options at about .10 and then sell them when they moved to .15 or .20 that is a 50% or 100% gain usuaally in 2 to 3 days."

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