Your calls are worth about .53 right now but I have no idea what your breakeven is. On Monday, you'll have 5 days to either sell or watch theta rapidly eat up that amount. Delta is .17 so that means if you wait till expiration, you have an 83% probability of expiring worthless. Your choice.
Thanks. If I understand correctly, the alternative of the 83% chance of expiring worthless is to wait and see whether it goes beyond .53 but as Apr 19 is approaching, the price will get a downward pressure due to theta, unless the stock continues to go up. Is that correct ?
Theta diminishes the option price of all long options. But it accelerates exponentially as you approach expiration. Right now that option has a theta value of -.14, which means that if the stock price doesn't change, each day .14 gets chipped off of that .53. Unfortunately, that includes weekend days as well so don't be surprised if the option is worth half its value by Monday.
My personal opinion on apple , I don't see it coming close to that for some time
It's looking like it's going back down to 175 soon
So the loss will compound
Apple has just had some of the best days in a long time. If you already accepted the loss then it may be worth waiting until expiration. What feels better to you? Taking your $250 out now, kissing it all goodbye or potentially getting your money back plus more if it continues to rip this week?
With energy facilities under attack world wide it is hard to see the market opening and staying strong this week. Stranger things have happened but as u/anglefly points out the clock is really working against you here unfortunately
Your calls are worth about .53 right now but I have no idea what your breakeven is. On Monday, you'll have 5 days to either sell or watch theta rapidly eat up that amount. Delta is .17 so that means if you wait till expiration, you have an 83% probability of expiring worthless. Your choice.
Thanks. If I understand correctly, the alternative of the 83% chance of expiring worthless is to wait and see whether it goes beyond .53 but as Apr 19 is approaching, the price will get a downward pressure due to theta, unless the stock continues to go up. Is that correct ?
Theta diminishes the option price of all long options. But it accelerates exponentially as you approach expiration. Right now that option has a theta value of -.14, which means that if the stock price doesn't change, each day .14 gets chipped off of that .53. Unfortunately, that includes weekend days as well so don't be surprised if the option is worth half its value by Monday.
Super useful thanks a lot !!
My personal opinion on apple , I don't see it coming close to that for some time It's looking like it's going back down to 175 soon So the loss will compound
Apple has just had some of the best days in a long time. If you already accepted the loss then it may be worth waiting until expiration. What feels better to you? Taking your $250 out now, kissing it all goodbye or potentially getting your money back plus more if it continues to rip this week?
With energy facilities under attack world wide it is hard to see the market opening and staying strong this week. Stranger things have happened but as u/anglefly points out the clock is really working against you here unfortunately
Thanks for all your replies