It is probably thinly traded, low volume, wide spreads and no liquidity, but how could we possibly know or investigate without the name of the stock? From here, we could make a hundred different guesses.
Worrying over ever nickel variation in price, or lack thereof, is going to drive you crazy.
Don't trade stocks with lack of liquidity so you don't create problems for yourself. The "a priori" of trading is liquidity and risk. If you choose to go against foundational principles, the results will be unpredictable, usually sad.
I bought a ITM call option with a premium of $0.60 and a strike of $20. I am completely bullish in the long term but expected a bearish oversold period, which is playing out to my expectations. My problem I'm having is that I'm a little confused on the price movement of the premium. As I said the bearish period is happening and the strike price dipped down to 19.70, below the strike price, yet my option sits at .60 which it should have lost a little value. The IV did see a 5% increase, could that of offset the loss? When I look at my chart for the option (sharebuilder) it appears that no data was reported for Thursday or Friday. I'm also worried that when my bullish period happens and it goes to where I want there will be no price movement there either. What should I look at to see how an option reacts to the underlying price, vega?
