The stock is rising, but your call option is falling. How is that possible? When you buy an option, you’re also paying for what could happen before expiration. Imagine two identical calls, differing only in their expiration dates: one expires tomorrow, the other in three months. The longer-dated option gives the stock more time to rise. ⏳ Time has value. All else being equal, this value erodes as expiration approaches. Another factor: the magnitude of price movements the market anticipates. Before earnings announcements, this uncertainty can drive premiums higher. After the announcement, it can drop sharply. A small rise in the stock price may then be insufficient to offset these two effects. To understand a call’s price, look not only at the stock’s current price—but also at the time remaining and expected volatility. The stock’s direction tells only part of the story.