Myrna Bode
Dec 01, 2024
In the movie”Wall Street” Gordon Gekko says to buy 1500 July 50 calls? What is a July 50 call?
In the movie "Wall Street," Gordon Gekko mentions buying 1,500 July 50 calls. Could you explain what a July 50 call option is? Additionally, earlier in the film, two brokers refer to options by their expiration months, saying things like, "What's up with those July calls?" and "How about those December options?" Can someone clarify the meaning and context behind these references?
1 Answers
It’s pretty complicated and I don’t totally understand it myself, but here’s the best I can figure.
A “call” has to do with options trading. With a call, you have the option to buy stock at a set price (after paying for the call with a premium payment) for a certain period of time. In the case of a July 50 call, the set price would be 50 and the expiration of the call is in July. If the stock has risen in value, you can buy those stocks and resell them for a profit.
The months the guys are talking about earlier are other option trades that expire during those months.
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