I bought Dec 10 strike price 40 calls of a stock currently trading at 28$. What happens if in the next two months there is a buyout of the company for 36$ cash. Are my options worthless? What if the buyout is for 36$ of the other company’s stock? Do I get new options in the buyer based on some complicated formula or do my options go worthless?

Suppose I think that a price of a stock is going to rise in a month or two. having decide to buy a call which should I buy—— There r a number of 1 month calls trading with different STRIKE PRICE. At which price should I buy? What IS the maximum premium that I will give?

What is the maximum amount of stocks that I will buy in a lot? Suppose I buy at the lowest strike price what will be the premium?? What is deep in the money that trades at a higher premium What is out of the money that trades at a lower premium?

Thank you.

Here is an example of what i am asking, say I wish to buy Feb calls and it is Jan 16th, the day before the January calls expire, should I buy my Feb calls before or after Jan option expiration, do stocks follow some sort of general trading trend of expiration day?

P.S. I am intelligently aware of option trading I understand the risk and I have traded them before successfully. I was wondering if there was a general strategy for buying options close to a existing option expiration. I know the stock will do well, but I don’t want to buy just to see a dip on expiration day, therefore i ask if there is such a rule for this specific scenario.

Can anyone recommend me a book, or more than one books that I should begin with? Much appreciated! Also if there are any professional day traders here that I could get in contact with to ask some questions about day trading for beginners or purpose get some short tips and lessons.

Thanks again.

– As a Indicator,what DOES Option Volume says about future price Movements?
– What does High/Low Option volume says?
– When usually High/Low option volume occurs?Can u give some circumstances at which High/Low Option volume occurs?

2.Volatility:

a. IMPLIED VOLATILITY (IV):

—What does High/Low Implied Volatility (IV) reading says? Does it gives any signals?
—If “Yes” to the above question,Does that IV reading has any correlation with price of stock in order to Ensure that the

provided signals ( By IV) are not fake.
—At what circumstances Implied Volatility become unusual High/Low?Can you Give some circumstances?
—Does IV provides Buy and sell signal for option trading?Please explain in simple and clearly.
—Does IV provides the direction>?Like is it going to bullish or bearish or sideways?

b. HISTORICAL VOLATILITY (HV) AND IMPLIED VOLATILITY (IV) RELATIONS:

—Is there any rules like HV should be above or below IV ? or any RULES LIKE IV located above HV?
—If “YES” to the above question, what is the signal it provides when HV is located above IV (or)IV located above HV.
—Does crossovers of HV and IV provide any signals?

3.LIQUIDITY:

—Can You Tell Me Any Simple Strategy (Other than Volume) to measure the Liquidity of Stock option?
—I hear one friend saying:measuring liquidity from Bid/ask spread…..But his explanation is not making me

understanding….If you really know answer, Please explain to me in simple and clearly….
—does Liquidity provides Buy and sell signals? Please explain in simple and clear way.

4.Suggestions:

If you have your own experience of the following for the option trading,please explain to me in simple way.

—Forecasting the direction?Like Bullish or bearish or sideways?
—Entry and exit signals of option trading

Thank you .