Hey, Anyone notice that Nov 25 calls are still 2 bucks! Even with a close just above $25, and expiration in a little over 2 weeks, these things STILL closed at $2.
I guess the perceived volatility is high. If you believe there's a pretty good chance that ASND will spike to 28 or 29, at least briefly, some time in the next 2 1/2 weeks, then being long these options looks like a good deal. And if you believe there's also a small, but not tiny, chance that a merger announcement could pop the stock to 42 overnight between now and expiration ....
I don't think it's a conspiracy. I just think the price represents the market's collective view of the odds.
The real risk is not that you'll get assigned -- highly unlikely that that would happen until expiration, and if it does, you can always buy the stock back. The risk is that ASND stock moves up enough that the option stays over $2, and maybe rises way higher, making you wish you'd closed the position at $2.
Tough call. If it were me, I guess I'd put in a limit order to close the position tomorrow for $1 1/2; there's a good chance you'll be able to close for that some time tomorrow. |
