please help with price movement

upload_2016-1-20_10-20-15.png


This is what I see at IB a few instants ago. Option price is being settled by .80. So if you sell now you get a profit of .30.

With so little time for expiration there is no time decay value. The price of the option will be closer and closer to (expiration strike) - (underlying price), which right now is 3.5 - 2.78 = 0.72.

If you think it will continue to tank at least 0.08 down more you can wait. Otherwise sell it.
 
haha thanks alot for the help; really appreciate it. So high delta and low spreads are two very important factors gotcha! And what about purchasing it when its put of the money?
 
Prorun said:
View attachment 160843

This is what I see at IB a few instants ago. Option price is being settled by .80. So if you sell now you get a profit of .30.

With so little time for expiration there is no time decay value. The price of the option will be closer and closer to (expiration strike) - (underlying price), which right now is 3.5 - 2.78 = 0.72.

If you think it will continue to tank at least 0.08 down more you can wait. Otherwise sell it.
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How does time decay value effect my overall profits? Is it that the closer i get to the expiration the more i lose on my profits? (GIVEN THAT THE STOCK IS STILL MOVING TOWARDS MY WAY )
 
lindq said:
You can check delta on the following site:
https://onlineint.optionsxpress.com/OXNetTools/Chains/index.aspx?SESSIONID=

Yes, you should be looking for higher deltas to better track the underlying. But you also need to watch spreads, which suck for CHK. So, in this case, you got a low delta, big spreads, and low open interest and low volume. Your underlying moved, but your position didn't track.

But we only learn by making mistakes, so this was a good use of tuition, eh?
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Hey where do you see the delta on that site? All i see last chg bid ask vol opint and action
 
If you purchased the JAN5 weekly (9 DTE) 3.50 Strike for 50 cents, you are now profitable by 10 to 22 cents per contract, not counting your commissions. Current DELTA is appx-.84 (ITM). Pic below:
upload_2016-1-20_7-34-9.png
 
thanks yeah im about 17 to 18 cents profitable right now. jsut wish i had bought more. see the messed up thing is that my platform doesnt show me a delta column which i now am learning from you guys that it is absolutely vital.
 
cashclay said:
the time when i bought into this stock was 3.30$ at .50 cents wit bid at 37 cents. my stock is chk. My platform doesnt show delta. the volume, open interest, and implied volatility. Wow this is more confusing than i thought it would be. Does the intrinsic value go up on options has it gets closer to the expiration date?
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Without seeing anything else, the bid ask spread is too wide (26%). Make sure it's liquid, otherwise the MM will just widen it when it starts moving in your favor, and gladly take your money.
And an after thought, save yourself alot of pain, learn the greeks inside and out.
Good luck.
 
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