buying a $30 Feb call option means you have the right, but not the obligation to purchase 100 shares of the stock at $30 (one option is for 100 shares) on or before the Feb 22 expiration date. You are BUYING the call option for $3.50 per share, with one option representing 100 shares that would cost you $350.00 plus commissions. If the stock increases to $35.00 then this is in your favor as you could exercise the option and purchase the 100 shares at $30.00 or $3,000.00 plus commissions and you would have invested $3350,00 plus commissions and the value would be $3500.00 less commissions.

If the stock stock falls below $30.00 per share than you would be out the $3.50 per share. Your break-even (less commissions) is the stock would need to rise to $33.50 by the explorations date.

Hope this helps.

Before you answer please go to this link: http://ca.finance.yahoo.com/q/op?s=BITA

the option quote: BITA140222C00030000

Okay so let's say I want to buy a Call option for 30$. The ask price is 3.5$ (for the contract), and expires Feb 22.

Questions

1: Does that mean that if I pay 3.5$ premium I buy the stock for the current price (31.14) and sell it at 30$ when and if that strike date hits?

2: If so then how many shares can I buy with that single contract (BITA140222C00030000)

3: because the volume is so low does that mean that it will be hard for me to buy the option?

Thank-you