Options repricing and underlying

Discussion in 'Options' started by EliteTraderNYC, Mar 3, 2012.

  1. Hey guys, lets say that you are holding front month at the money call option on a $50 NYSE stock during market hours worth $2. The stock moves to $50.75. How quickly will the options reprice to reflect the extra $.75? Minutes, seconds, hours, or possibly never? Just wondering how quickly options prices react to stock prices. Is it possible that your option will not fully reflect the extra .75?
     
  2. rmorse

    rmorse Sponsor

    Repricing of options is a fluid process. They can change even if the security does not move. In general every move of .02 you might see option change price or size of the bid/ask.