Hi Everyone. New to options. Lets say I know AMZN stock will goes up in next few hours. I want to purchase over 10 contracts (1000 shares) Call potions. would this large position make the stock reverse direction and plug down? in other word, would this position has any effects on the direction of this stock? Second, would I be able to sell my position in few hours and pocket the profit? Thanks
No, you are a small fish. There are firms out there that can move markets, but they buy options worth millions. Your trades will have zero effect.
As we know options are traded in futures. Each contract entitles the option/buyer to 100 shares of underlying stock upon expiration.