The options were priced expecting much larger reaction to the news of positive results. Now that news is out and nothing else major expected within the time frame of your options expiration, the premium people are willing to pay is much lower. Based on the cost of the short term ( month or two) options recently, I would say the market was expecting a $2-$3 move once the positive results were announced instead of the current $1.2
yup, which is precisely why instead of going long shares I go short puts (that is, sell puts), expecting the premium to dry up, thereby causing the puts to expire worthless and allowing me to keep all the premium.
can you explain this with more detail perhaps? the chart for october 9 calls is totally obscene and can't possibly account for a 50% drop in value today versus the first week of august when the stock was at 8 as well. this just doesn't make sense. the stock goes up, the calls go up. stock drops, puts make money. there's a bloodbath of red in the calls side today.