I am amazed at how the option pricing works. 3 trading days ago when Tsla stock price was at $142. I paid $4.50 for Nov. 160 strike price calls. Its a little above that rigt now but yet in 3 trading days the price went from $4.50 to 30 cents. WOW! That is just ridiculous. I buy options a lot and have never seen it get so cheap. I can't fathom why that is. 3 trading days made it worth that much less? I hope the stock price gets to 170 by this friday just so i can just kill it. Just for the sake of how stupid and ridiculous the price adjusted. CRAZY!
Option premiums are high and they decay quickly. One way to get around this problem is to do option spreads. If you pick the right strikes, you can usually do a bull spread while paying little or no time premium.
There was a post last Thursday by a guy who bought the 150 strike calls that expired the next day for 10 cents each. ($10 each) Because the 150's had the highest open interest he felt there was a good chance Tesla would close near 150 and he would get a pop on the rally. Didn't happen.
Since the calls are out of the money all of the money you paid is 100% time premium which decays at an accelerated rate as the days wind down to expiration. It is all based on math. That is why option sellers tend to make money while option buyers tend to lose. Most options expire worthless.