What You Actually Pay
When you buy an option, the price you see isn't the only cost. Say SPY's at $560 and you buy a $565 call for $2.00—that's $200 per contract (options control 100 shares). But your broker also charges a fee, usually $0.50 to $1.00 per contract to open and again to close. So your real cost is the premium plus fees in and out—maybe $201 to enter, another $1 to exit. If the option expires worthless, you lose the full $201. If you sell it for $3.00, you collect $300 minus the $1 exit fee, netting $99 profit on your $201 outlay. Always subtract the round-trip fees from your fill prices to see what you actually paid and what you actually keep.