Back on 7-27-10 I bought BP calls for Jan 12 for 7.09 per contract. At the time, the stock price was 35 or so. Now, the stock is trading at 41.50+ and my contracts are showing to be worth 6.40. On a haha side, WTF do I have to do to make a profit? On a serious side, Can someone give me some insight into how to value options because obviously I am missing something here.
The stock gained 6 points and I havent broken even yet. I guess at the time, maybe the calls were in high demand and way overpriced? I mean of course that's what happened, but how do you properly value options contracts?