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Options trading evaraina chestara one doubt pls help


jua_java

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5 minutes ago, Hydrockers said:

First ni doubt veyi

Nenu nvidia call konnanu bro 2/21  350 strike !share value perigindi ivala but call value -96% poindi ! Emi ardam Katledu ! Share perigindi kabati call peragali kada 

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3 minutes ago, jua_java said:

Nenu nvidia call konnanu bro 2/21  350 strike !share value perigindi ivala but call value -96% poindi ! Emi ardam Katledu ! Share perigindi kabati call peragali kada 

not always, multiple factors vuntaayi...

2/21 antey inka 1 week(literally 4 business days) ye vundhi kadha, so buyers anthaga vundakapovachu. 

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11 minutes ago, jua_java said:

Nenu nvidia call konnanu bro 2/21  350 strike !share value perigindi ivala but call value -96% poindi ! Emi ardam Katledu ! Share perigindi kabati call peragali kada 

Negative delta undi untadhi..it went down and never came back up..  your strike is out the money and 351 strike to come in the money in 1 week is hard.. so the option price will be in red unless the stock makes atleast a 10% move in the next 3days

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17 minutes ago, jua_java said:

Nenu nvidia call konnanu bro 2/21  350 strike !share value perigindi ivala but call value -96% poindi ! Emi ardam Katledu ! Share perigindi kabati call peragali kada 

Enni days kinda konnav ?

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More clarity, ne option bet enti ante 21st kalla 351 avtadi ani... call price increases if the above move is possible. So oka eeoju oka 5% perigina, 21st ki 351 avtadha? Possible aithene ne call worth untadi. So price kuda depends on that probability..

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39 minutes ago, jua_java said:

Nenu nvidia call konnanu bro 2/21  350 strike !share value perigindi ivala but call value -96% poindi ! Emi ardam Katledu ! Share perigindi kabati call peragali kada 

Your option has intrinsic value and time value. Time value diminishes with time for

out of the money strike price

 

if alpha is 1 that means every dollar rise of stock price makes your option raise 1$

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36 minutes ago, jua_java said:

Nenu nvidia call konnanu bro 2/21  350 strike !share value perigindi ivala but call value -96% poindi ! Emi ardam Katledu ! Share perigindi kabati call peragali kada 

I think you got it before earnings .... its always bad Idea to play options call or put into options because if there is no big move your call will be screwed up...so your 350 call was priced in for a big move and that big move I mean like ~15-17% dint happen so with time decay these options will be huge ...

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