Call options and dividend?

Discussion in 'Options' started by mizhael, Jan 25, 2009.

  1. Well, look, we don't have to see it going to $20 before Feb 20. As long as it goes up a fair amount, then I will be above water, right?

    Of course, I know I am losing both time value and volatility when it is going up slowly, due to the characteristics of a option call.
     
    #11     Jan 26, 2009
  2. I don't think there is enough time. Even if the stock price doubles by Feb 13th (with 1 week till the expiration), I do not think the option will appreciate much.
     
    #12     Jan 26, 2009
  3. How did you calculate that out? I'd like to learn. Thanks!
     
    #13     Jan 26, 2009
  4. You have ALREADY lost a great deal of money on this trade. That is not going to change.

    Accept that and move on with your life.

    Not every trade can be a winner, and if you continue to BUY options, you will discover that you lose far (far) more often than you win.

    You always have hope. But this is one hope that is not going to be fulfilled.

    BAC is in trouble and wishing it were not so doesn't change anything.

    As I said, your have no position. You are long zero delta. These options are worthless. Do not double up. Do not buy March 30s.

    Find a real stock to trade.

    Mark
    http://blog.mdwoptions.com/options_for_rookies/
     
    #14     Jan 26, 2009
  5. Your options will expire worthless. Sorry, you ended up putting money in the option writers pocket.

    Curious what date did you buy this option and how much did you pay?

    Hopefully this was at risk money that you were not counting on.

    Curious what was your reasoning behind that trade?
     
    #15     Jan 26, 2009
  6. Bad advice, poor guy is going to lose more money and make the writers richer :)
     
    #16     Jan 26, 2009
  7. spindr0

    spindr0

     
    #17     Jan 26, 2009
  8. spindr0

    spindr0

    There's no limit to the hope that you can have.
    However, probability of success is a real downer.
     
    #18     Jan 26, 2009
  9. spindr0

    spindr0

    OINK OINK


    If BAC doubles by a week until expiration, the option might double. And if the spread widens by a penny, he might make a penny from today's price. LOL.

    Gee this is a fun filled thread...
     
    #19     Jan 26, 2009
  10. nickdes

    nickdes

    -------------------------

    Agreed!
     
    #20     Jan 26, 2009