Because of the leverage of options it can be feared that on a retrace the options will become out of the money quite quick so it is a fear thing in my opinion. When a stock starts to run in the very early stages there is virtually no risk so they are priced without fear of being out of the money for too long and a premium is easily justified.
That's how I feel anyway so I suspect that many other traders feel the same.
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Because of the leverage of options it can be feared that on a...
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