What Am I Missing Here On This Options Purchase?

Discussion in 'Options' started by hayder1, Jan 14, 2019.

  1. hayder1

    hayder1

    I entered a put order for 30 options of TGT on this last Friday (1/11) towards the end of the day at $0.74/option and a strike of $67.50 with an expiration of 14 days.

    The price I wanted was below the market price at the time and triggered once that stock approached roughly $70.

    Fast forward to today and the stock drops roughly $1.20 - $1.30 from where I bought the options and they are still only worth $0.74 a share.

    Did one day closer to expiration really = $1.20 drop in the stock price?

    I don't understand how there was no value gained with a 2% drop in the stock.

    Please help me understand what I'm missing.
     
    murray t turtle likes this.
  2. Theta + IV are probably factors. Looks like IV went down compared to last close

    upload_2019-1-14_16-42-46.png
     
    murray t turtle likes this.
  3. %%
    I would much rather profit off a TGT downtrend; they have a 97% debt load which will ruin them , most likely.

    BUT with ''>12% price change last 4 weeks;I used IBD data.Even though its below 50+200dma;
    that's why i seldom buy short term options.
    Same trade[1-11-19] with SDOW would be profitable;
    word to the wise.

    A good thing about [puts],shorting trash like TGT; losses can be limited.:cool::cool:
     
  4. Robert Morse

    Robert Morse Sponsor

    Holiday sales numbers came in 01/13/2019. They are are like an earning cycle. Once out, less uncertainly. Ivol drops after.

    upload_2019-1-14_17-21-29.png
     
    murray t turtle likes this.
  5. %%
    Wow, they cant even do well [earnings]Christmas season. AMZN + WMT have done well, but it can take months to show up or down in stock price.
     
  6. Probably VEGA.