THIS IS CALLED STOCK MARKET

This is the quote price of Larsen and Toubro 1420 CALL option of May expiry of 26th May 2016.
L&T announced good set of numbers in its quarterly results and the market gave a thumbs-up, resulting in 14% increase in its stock price.
Well, the scenario is far more impressive when it comes to options. The price of the call option went from Rs 0.25 to Rs 60 within just 24 hours, thats a humongous 240 times!
This is called stock market..the kind of money that can be made if you are right. Not everytime it happens when a company results are good!
And there is a bad side of options trading also, as mostly people lose money in options because of these kind of expectation of huge returns.
Well, lets go a bit into the core of this price surge.
A price movement of 14% in an underlying security itself can increase the value of a put/call option 7-8 times in any day of a month, even if its the first day of an expiry. And here it was the day of the expiry. Hence the THETA rule works on its own, due to which the price jumped so much as the days to maturity was 0. There is an inverse relationship in % change in option price movement and the number of days left for its maturity (or the day of expiry). And this is why all the out-of-the-money option prices become zero at expiry.
For, better understanding, you can chek out this link:http://dipesh-majumdar.blogspot.in/2015/03/understanding-option-greeks-use-of.html