Calls can double and triple right before your eyes and before you know it, right back down again!
Interesting thing though about one difference between calls and the stock. The stock from $3 to $6 is a double, $6 to $9 a 50% gain, and $9 to $12 a 30%+ move.
But if you were to buy calls at $3 stock price and sell at $6 you would probably get a 200%+ gain depending on your strike price and exp month, and another 200%+ gain from $6 to $9 and another 200%+ gain from $9 to $12, again depending on your strike price and month. (Lather, rinse and repeat!)
This shows me that it is ALWAYS better to take your profits immediately on a call option, even if it is not your double, even a 20%+ gain and just re-buy them at any higher stock price all the way up, since you will still keep getting the same percentage gain increases no matter how high your stock goes versus the reduced percentage increment gain if you had just the stock.
Additionally, in a volatile one like this, if you are doing covered calls, you can keep trading the options as they go up and down and still keep your stock, not worry about any dips because with each sell of the calls and re-buy and re-sell you decrease your dollar cost average until eventually you could ride free without ever having had to sell the stock outright, lol.
Good luck to you, too. Nice to find someone interested in making money with options, can be really profitable and I enjoy reading real strategies on this as opposed to BS pumping from posters paid to promo a stock!
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