Looking At Five Day Options At The Start Of The Week And Recognizing A Moment Of Panic Selling. Disney.

One might say that there is no merit to randomly guessing as to what might happen over the coarse of one week. My point is to show how volatile option trading can be. Let's use the stock Disney. Here is the price of it's 106 series of Calls going into the opening trading session. Can you see the price of $85.00 which means the breakeven point on these Calls at the end of the week would be $106.85. But here is the problem. What happens if Disney drops fifty cents on the day and closes at $104.81? Suddenly the clock is working against you and the value of your position would be down like 30%. Buying options that expire in five trading days makes for a long week of being married to watching the screen. That's not an enjoyable experience. So let's move on and see how Disney closed the day. It closed down a touch. The Calls are down 21%. I don't like start of the week Call options that expire that week in general. Now it's five day chart. What was $85.00 is now $...