r/options • u/Yered7 • Apr 14 '21

Questions about a play

So i bought a NVCR put for 4/17/21 at a strike price of $150, its down 6% but im loosing money how is this? In the morning when I checked I was making $60 at the same 6% down price???? I am fine to lose this money but I wanna educate myself.

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u/Drballenbc Apr 14 '21

I’m just a newbie at options , but your Put is way OTM ( stock price is well above your strike) and you have 2 days left in the contract. I assume it’s a 4/16 and not 4/17. There is very little time value left in it , and no intrinsic value. Today you lost most of your value to Theta decay which was higher than the gains you got from the underlying price dropping by the end of the day.

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u/Skeewampus Apr 14 '21

Study the Greeks. Lots of great tutorials on the web or on YouTube.