Boiler Room: The Official Stock Market Discussion

HeavyTheDon

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Can someone explain to me how the underlying price of a stock goes up but I don't see any profit on my options? My delta is 1 so I should gain dollar for dollar with my options. Am I missing something here?
 

无名的

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Can someone explain to me how the underlying price of a stock goes up but I don't see any profit on my options? My delta is 1 so I should gain dollar for dollar with my options. Am I missing something here?

Maybe you overpaid.

Have to know the stock and contract you bought to get a better idea.
 

HeavyTheDon

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Maybe you overpaid.

Have to know the stock and contract you bought to get a better idea.
I bought 6 VZ (Verizon) call options for 5.50 per contract that expire on the 2nd week of August with a strike price of 51. When I bought the calls, VZ was trading at 55.91 and by the close of the market it was at 56.26.

Shouldn't I be at a profit of $210? BTW this is my first time buying deep in the money.
 

Domingo Halliburton

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I bought 6 VZ (Verizon) call options for 5.50 per contract that expire on the 2nd week of August with a strike price of 51. When I bought the calls, VZ was trading at 55.91 and by the close of the market it was at 56.26.

Shouldn't I be at a profit of $210? BTW this is my first time buying deep in the money.

Is there any volatility in VZ? The implied volatility is probably very low.
 
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