Is there a software that helps you calculate what the price of your Stock Option will be $2 to $5.00 above the current price?
How come as the underlying goes most of the Greeks disappear? I have had problems getting filled when the stock is, let me give you a example.
ABC is $56.00 with two months of time left, the Bid is $5.4 x $7.8 Ask, soon ABC hit's $56.6 and put my order out STC 16 contracts at $6.7 and they sit even when ABC is trading at $56.90 and soon hit's $57.1, the stock options were $.50 in the money and nobody bought them. I cancelled the order and soon ABC is at $59 Bid is $7.90 x $10.9 and I put the order in at $9.5 and soon ABC hit's $60.1 and my order is still not filled. There was only one point over a two month period I was able to get a tiny bit above intrinsic value, the day before earning someone offered $.20 above intrinsic value $11.90 when ABC was $61.7 and I hit the bid. ABC had a great Q and it moved up $5, I don't regret missing out on another $5.00 with a powerful stock.
Is there a Option Price Calculator that discounts all the Greeks coming down as the price of the Option goes up? If I think my stock that's currently at $90 is going to hit $97 while I am on vacation, would you put in your order for $7.00 even though the contracts expire in January 2015? Is there a art to putting the price of Options in that I am missing because I don't understand how stock options can be bought with four months of time and you don't have to pay for Time, Volatility and other Greeks I do not understand. Thanks for your recommendations, there probably is no set rule how to price options because the Market is so crazy, just looking for ideas how to price them. thank you.
