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Each day that goes by and YHOO stays below 30, it become less and less likely that YHOO will pop over 30 so the option price starts decreasing. On October 10th, if YHOO is still at 27 then the October 30 call would probably be trading at 1.10 or so. This is called the "time decay" of options in that each day that goes by the odds of a price movement become less and less. This is the turtle winning the race! Next: Writing Covered Calls.
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