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I totally disagree with others here. If you didn't understand why you're way out-of-the-money call didn't change, you have no business dealing with options. No one has any rational justification for buying out-of-the-money options. 99% of them go to zero before expiration. You bought the premium. The seller said,"I need lots of protection since ATHM is going to 1000 tomorrow so if you want to buy them from me, you got to pay me the protection money". You, looking for leverage, being greedy and stupid, decided you know more than the protectionist, so you bought the 100 to 1 lottery. You could have used the money to buy the stock and you would have done fine. In 8 months ATHM has to close at 223 for you to realize what those calls are worth today. It is just a bet that the stock will go from 15 to 22, but it is 70 points and if it took all those 8 months you wouldn't get one more dime than what you got now. 70 points for nothing. You probably bought the things at 20. So you gain 2 points and lose 70! Well, we do have to consider that it is % change. Why bother to compute that? If the stock doesn't reach 200 in 8 months you lose everything. The odds are only 100 to 1 that you will lose everything, so if your greed fails you, you can sue the experts on this thread for misleading you and thus follow a noble American tradition. |
