Let's consider a second scenario whereby Citigroup's stock price fell to $30 by the time of the call option's expiration. Since the stock is trading below the strike of $50, the option isn't exercised and expires worthlessly. The investor loses the premium of $500 paid at the onset. An investor purchases a July call option on Citigroup Inc. (C) with a $50 strike price. The premium is $5 per contract100 sharesfor a total cost of $500 ($5 x 100 = $500). At expiration, Citi is trading at $75. In this case, the owner of the call option has the right to purchase the stock at $50-exercise their option-making $25 per share profit. When factoring in the initial premium of $5, the net profit is $20 per share or $2,000 (25 - S5 = $20 x 100 = $2000). Let's consider a second scenario whereby Citigroup's stock price fell to $30 by the time of the call option's expiration. Since the stock is trading below the strike of $50, the option isn't exercised and expires worthlessly. The investor loses the premium of $500 paid at the onset