This is a unique situtation today. I was rolling my call out and up, but I did NOT expect the premium I found. What am I missing that would demand a premium like this? It is over 7% in a week?!?! That number seems dangerous.
Sold to Open|-1|UPST 02/14/2025 75.000 C Cash|5.66|565.96|
|—|—|—|—|—|—|—|—|
Bought to Close|1|UPST 02/07/2025 72.000 C C|Cash|0.09|-9.03|
Earnings is next week, but still, not sure what I am missing here. Overall, the trades are making me money, but I like to know why things like this are happening.
I think that is your answer. The 21 day ATR on the stock is 5.76 so that it towards the high end but with earnings I am sure it is much more than that. You are giving it a little bit over 7 percent range of movement and the last two earnings it was up over 50%. So while your call sounds like a good deal I think if it does good you are not going to be happy.