Questions about options, answered with live examples

Each page answers one question in plain words, with a demonstration you can move.

• Why did my call option lose money when the stock went up?
  A call can lose value while the stock rises: time passes and the expected swing shrinks. See the three forces split apart, live.
• Why did my option lose value after earnings?
  Before a company reports, options price a big move. The morning after, that expected swing falls away. See how far the stock had to move just to stay even.
• Why am I down as soon as I buy an option?
  You buy at the ask and could only sell at the bid. See what the spread costs the moment you buy, and how far the stock must move to earn it back.
• How much can I lose buying a call option?
  If you buy a call and hold it, the most you can lose is what you paid, plus fees. See it for any price at expiry, and what can make the risk bigger.
• Can I sell a call for a profit before it reaches break-even?
  The break-even you're shown is for expiry. Before then, a call can be worth what you paid with the stock well below it. See where, day by day.
• How much value does an option lose each day?
  Time value shrinks as days pass, if nothing else changes, and for an option near the stock's price faster near the end. See the daily loss for each day left.
• What is IV crush?
  IV crush is the fall in implied volatility after news such as earnings. It can lower an option's price even when the stock moves your way. See it with a live example.