CastleRock said:
Mr President Elect said:
CastleRock said:
Got in on FUBO this AM at 39. That's looking like a busted trade too.
Might need to step back and watch this thread, re-evaluate.
There was a lot of speculation on where FUBO might wind up this morning, but for the most part that wasn't (at least to me) a signal to buy here and hope for the run-up, but rather where to sell the remaining FUBO calls that were discussed on Monday. They are way up. Just wait for the entry posts and don't FOMO into plays on the back-end. Just trying to help and not harping on you, I know the feeling.
Thanks, although for the options to appreciate, doesn't the underlying stock have to rise as well?
No, vega is a measurement of an option's sensitivity of price change with respect to change in volatility.
An increase in volatility will cause an increase in an options value. You could have a call option increase in value, even with the stock price reducing slightly, due to an expansion of volatility, like leading up to earnings, for example.
I'm usually selling puts and looking for stocks with historically high volatility, since volatility is generally mean reverting. I don't need the stock to go anywhere, just for time decay and the inevitable reduction of volatility to make money.
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