Past efficiency is just not a promise of long run return, neither is it indicative of long term functionality. Investing consists of chance. The worth within your financial investment will fluctuate and it's possible you'll reduce funds.
A longer expiration is also valuable because the selection can retain time worth, even if the stock trades under the strike price. An alternatives time benefit decays as expiration ways, and options potential buyers dont click here want to look at their ordered options decline in price, potentially expiring worthless In case the stock finishes down below the strike value.