Quote:
Originally Posted by imperiouskitten
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thank you for the excellent advice, I am likely to take it! My calls have increased in value for some reason I do not yet understand. Implied volatility change or something.
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Yeah, calls go up in value when) implied volatility suggests the possibility of a major movement upward or downward, or B) when the upward movement is progressing the stock toward exceeding the call's strike price at a rate faster than necessary for the price to exceed the strike price before expiry, but that growth is required to remain constant, or it fails. And with 20% dividend payouts promising to tank each stock by 5% on their quarterly payouts coming up soon, the growth rate will not be constantly progressing toward your strike price, which is why I said to exit the position before the ex-div date.