The stock price keeps going down but the price of options isn't going down. Actually the price of October call options has not changed since this morning even though the stock price has dropped more than $2 the past few hours. Why is this??
The longer your option (October vs. august) the more time it has to evolve but the slower it is to change. The august options change with smaller stock fluctuations but they only have less than 30 days to expire.The options "delta value" is the amount an option value changes for every $1.00 of stock value. The delta is often different for every strike price and option month. Ive been unpleasantly surprised by screwy deltas several times. Also need to pay attention to the bid/ask spread. The amount you pay vs. the amount you can sell for. Need to make that difference up before you show a gain. I'm not an expert but I hope it helps.