options trading example

Trading on Wall Street Survivor’s stock simulator isn’t limited to your regular buying and selling of shares. You can also practice your skills in options trading.

Today we’ve released an update on Wall Street Survivor to make it easier than ever to practice trading options.

What is an Option?

ALSO READ: The Different Flavors of The Stock Market

Well, here’s the textbook definition…

options definition

Option contracts give you an option to buy or sell something of monetary value…in our case, stocks. A call option gives you the option of buying something, whereas a put option gives you the right to sell something.

Options Trading Simulator on WSS

To get your hands dirty with some options,you should join a WSS League that allows for options trading. You can see this by going to the Make a Trade page and switching to the options trade widget.

If the League your in doesn’t allow for options trading, you’ll see this:

Can't trade options

If the League does allow for options trading, you’ll arrive at this page:

trading options

Today’s Update

WSS has automated the exercising of your options contracts. 

This means that when your options contract reaches its expiry date and your options are…

In-the-money: Wall Street Survivor will automatically exercise your contracts and fill your portfolio.

Out-of-the-money: Your contracts will expire with no changes made to your portfolio.

Here’s an Example using WSS Options Trading Simulator:

You buy 3 call options contracts (1 contract = 100 shares) of NFLX at strike price of $300. The contracts expire in 1 month.

options trading example

Situation #1: A month passes, and on the set expiration date NFLX is trading at $350. This means you are in-the-money, so the options will be exercised. Your portfolio will automatically be filled with 300 shares of NFLX at $300 per share.

Situation #2: On the expiration date, NFLX stock price is at $250. This means you are out-of-the-money, so the options won’t be exercised. Your contracts will expire and no changes will be made to your portfolio.

Options contracts expire every week on Friday, and your account will be updated end of day each Friday.


Want to learn more about Options? 

1) Take the Options 101 Course 

2) Get practicing and trade some options!

If you have any questions, email us at support@wallstreetsurvivor.com or leave a comment below! 

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