New to options trading. Recently opened positions in three companies. My intention was to hold/control 1000 shares of each and since at the time I didn’t have enough to buy shares thought I’d try buying calls for the first time. The positions are as follows.
10x LUNR 16 Jan 2026 2.5 Call – $3.60
Purchase date – 23Aug – sp $5.20
Bought ITM at the lowest strike I could afford for 10 calls. At the time of purchase there was a fair amount of extrinsic value with the long expiration, delta was around .80. Now with the recent run up it seems delta has moved to 1 and ev has dropped to 0. My intention was always to own shares but trying to understand. Thought I would be able to sell to close, make some extra profit from the ev, and then buy the shares. However now it seems like it would be best to just hold the call or exercise.
Is there a relationship between delta and ev?
Have I really lost anything regarding the ev disappearing as the underlying increased?
Lastly, if the delta is 1 does it make any difference if I hold the calls vs exercise for shares?
10x AUR 16 Jan 2026 5 Call – $1.35
Purchase date – 31July – sp $4.00
Purchased OTM so was all extrinsic value at first. With its current run up there is now a mix of intrinsic and extrinsic value. It’s currently at .75 delta, 1.23 instrinsic, and 1.80 extrinsic.
Should I be concerned about the ev disappearing if the underlying rises similar to what happened with LUNR? Again, if delta goes to 1 is that better than any ev I’ve lost?
10x RKLB 16 Jan 2026 4 Call – $3.90
Purchase date – 23Aug – sp $7.00
Also purchased ITM similar to LUNR. Currently has .80 delta, 3.60 intrinsic, .80 extrinsic.
Trying to understand the movement better. Was it a mistake buying deep ITM with LUNR AND RKLB? Would purchasing these ATM have been a better choice?
Thank you for any advice 🙏🏼
Posted by Quietstep