I see an interesting phenomenon and I don't know how to explain it.
I bought a long call option for 60000 USD dollars with the expiration date about 90 days later. At the time I bought this option, the underlying stock price was at 570 USD. However, the stock price dives about 10% and rebounds back to 570 USD about a week later. Then, I just see my option value is at 50000USD.
I assume that after a stock price rebounds, my option value will be the same. So, I don't know why this happened. Is this because the volatility of the option value? How do I avoid this problem? Buy a spread call? Thanks