Can a premium worth zero go up?

Discussion in 'Options' started by jr07, Jul 15, 2010.

  1. jr07



    I have an ITT Corp. October 2010 Call SP 60 which I bought in April at 2.3$, and it it currently worth 0. Stock was 57$ when I bought the call and is currently at 47$.
    Can this option gain value if the stock appreciates significantly? i.e moves close to 60$?
    Or is it dead forever
  2. An option is never dead, and never zero as long as it still has time left in it.

    Could you share why you bought the call? I am always interested in reading about why people buy options (calls in particular).
  3. jr07


    pure speculation, buyout rumors
  4. When speculative call-buyers let their call-premiums fall to "zero", it's bad. It's even worse if you offset the option while it has a lot of time remaining until expiration. Don't be an idiot twice. :mad: