Options pricing
For my foray into options trading, when Air Canada (AC) shares were at 11$-something, I bought 1 options contract at a price of 1.20$ (so 120$ plus 10$ commission = 130$.) The contract expires in Oct 2015, with a strike price of 13$. AC shares have hovered around 12.50$ the last month.
Today, they shot up and are at 13.45 right now. If I pull the option chain for the same, the Last price is now at 1.30, bidding at 1.45. So if I was to sell it right now, I'd essentially break even.
[IMG]http://i.imgur.com/Va6qoq6.png[/IMG]
But when I sign into VirtualBrokers, this is what I see :
[IMG]http://i.imgur.com/98qU68G.png[/IMG]
Why is the price at $1.15? And why am I in a 15$ loss?
Also, on a related note -> the "last" price has remained the same all day despite large fluctuations in the share price (it went past the strike price.) Do options prices change by the day, or are they instantaneous, like Stocks/ ETFs?
Today, they shot up and are at 13.45 right now. If I pull the option chain for the same, the Last price is now at 1.30, bidding at 1.45. So if I was to sell it right now, I'd essentially break even.
[IMG]http://i.imgur.com/Va6qoq6.png[/IMG]
But when I sign into VirtualBrokers, this is what I see :
[IMG]http://i.imgur.com/98qU68G.png[/IMG]
Why is the price at $1.15? And why am I in a 15$ loss?
Also, on a related note -> the "last" price has remained the same all day despite large fluctuations in the share price (it went past the strike price.) Do options prices change by the day, or are they instantaneous, like Stocks/ ETFs?
