The Cisco Sept 21st $46.00 call option has ended in a profit. The call was stopped out at $1.02. It was a bit of surprise that the option hit that price as it was as high as $1.31. The price drop of the option was a combination of the stock lowering a bit combined with the largest theta burn of the option to date. Before trading opened, the time value was 0.70. At the end of trading, time value moved down to $0.50.
Sometimes, that happens. The price of the option moved down 30% to our stop loss and we are still walking away from the trade with a profit. Now we move on to the next trade.
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