Ok, I bought a cat 110 call that expires today, the stock is at about 107. Yesterday (Thursday) the stock was down roughly .50, at that price the option showed a last price of .01, ask of .01 and bid of .00. Late in the day the stock was up .05 and the option was, last sale .04, bid .03, ask .04. My question, why would someone pay .03 for this? There is no way it will reach 110.
1) It's bad "technique" to have open, short-positions on your statement when the premiums are "teeny". The risk/reward is "bad" too. 2) I told you to get out of that piece of feces earlier in the week. 3) There's ALWAYS a chance that anything can happen. :eek: