Replies to post #4493 on Langlui's Big Board and Options Plays

[langlui]

there is a premium and time value on option. Say GOOG is at $550, the $550 call option doesn't cost $1, but it's $24. $24 has the premium and time value added to it. When we get closer to the 3rd week of May, assuming GOOG is still trading at $550, the $550 call will lose the premium and time value (because there is not much time left and premium is gone), by then it should worth about $4-5.

Does this help?