The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be answering a common question we get which is – “The stock moved the right way, but my option lost money?” And so, this is a common question that people get, especially people who are starting out trading. Even some experienced options traders I think fall quickly into this little pitfall of not understanding really what’s happening with the position or just maybe losing sight of what’s happening with the position. But let’s say you get into a position and you’re anticipating that the stock is going to make a big move higher and you get that big move higher, but your option contracts lose value. And this can be frustrating, I get it, because you’re positioned for that move, you’re expecting that move and then you actually predict or assume that the stock is going to go higher and you do it correctly, but you get a loss in value for your option contract. This can be tough because it’s probably one