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33

If you look at DISH's dividend history, you can see that on 20111101 DISH declared a special $2/share dividend payable on 20111201. The ex-date for that 8% dividend was... 20111115. The $2/share drop you saw from the 14th to the 15th was the stock going ex-dividend. So the stock options (which are American options) were deep in-the-money with a large ...


2

With both stocks getting whacked, clearly, the market doesn't like this merger. Your 8/14 $150 calls dropped $7.45 today. If LVGO is below $150 on 8/14, these calls will expire worthless. When the merger occurs, the option contracts will be adjusted. You will receive 59.2 shares of TDOC per 100 shares of LVGO plus $11.33 in cash. If you multiply .592 ...


1

If the price of the contracts rise, it's a "paper loss", meaning a position you hold has incurred a loss, but it isn't locked in unless you make a transaction. If you were to close the position in that exact moment, then of course you would incur losses. But if you hold out long enough or eventually to expiration, the price will eventually approach ...


2

Would you rather own a $20 stock that goes up 10% or a $1 stock that goes up 100%? Comparing percent gain is worthless. If you look at real time quotes, when there's a significant move like today (up 10+ dollars), for a stock with liquid options, the lower call strike will always appreciate more than higher call strike. The quotes that you provided are ...


-1

You did not indicate what overall strategy you are employing and that determines the answer. If this is a covered call, there are no consequences if implied volatility increases. The risks that a covered call writer face are opportunity risk (the call is assigned and you miss out on the security's gain above the strike price) and the asymmetric risk of ...


2

Under most circumstances, if you own a one month $60 call and the stock moves up $1 in one day, you're not going to make any money. This is because the delta is very low. Add to that the B/A spread and it's even more unlikely. Yes, you can find outlier situations where the implied volatility is sky high and the $1 move generates a profit (10-15-20 cents) ...


1

It's hard to make a good case for buying or selling a June 2022 $5,000 call. However, not all investors and traders are logical. Here are some possible reasons for using far OTM options: The option is under or overvalued and the outlook is for a reversal in IV and price The option is being used for risk control in a more complex option strategy (vertical ...


1

The value of an out-of-money option comes from the possibility that the stock fluctuations will be large enough, and in the right direction, to put it in the money. The longer the time frame, the more opportunity there is for the option to go into the money, and so it will be more valuable. As time goes on, there's less opportunity to get into the money. ...


1

There are some strategies that can take advantage while being far out from the strike price, even at something that may look that's never going to happen. That is intended. You can sell an option call of Amazon at 5000 and they may buy a call at 5005, which will limit their potential loss. The user will collect a premium for that risk. In this case, the ...


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