If you spend a dollar to buy an option, the option needs to be more than one dollar in the money for you to profit.
And the mystery stock is ... nobody knows. Only a newbie knows about this great stock, and it will go away if he divulges it.
The could be a dozen different things, but you don't give us all of the information, like the name of the stock.
It might be because there's no volume and it doesn't trade and the quote isn't updated, but we can't tell because we don't know which stock.
It might be because of an earnings report or a vol crush, but we don't know because you won't divulge the name of the stock.
A specific answer requires a specific stock.
Thank you for playing.
I'm learning about options trading and doing some simulations on Investopedia. I bought a put with a strike price of $16 when the stock was $16.54. The stock has now been floating around $15.83 yet my option is still worth less than what I paid even though it's technically 'in the money'. Am I missing something? Is this just because it's a simulator and not accurate or can this occur in the real world? Thanks for anyone's help.
