Why is my call losing money when the stock is above my strike?
Stock above your strike but the call is still red? You are not crazy, and it is not bad luck, it is arithmetic. In the money does not mean in profit. Your real breakeven is the strike plus what you paid, not the strike itself, so you can be in the money and still down.
Watch the numbers. You buy a 50 call for 3 dollars. The stock climbs to 51. Your call is now in the money by 1 dollar (51 minus your 50 strike). One dollar of real value. But you paid three. So right now you are down 2, even though the stock is above your strike. That is the trap.
You do not turn a real profit until the stock clears 53, which is your 50 strike plus the 3 you paid to get in. That is your breakeven. Not the strike.
And it gets sneakier. Theta nibbles value every day, even on your winner, and if implied volatility dropped since you bought, your call is worth less at the exact same stock price. All of it deterministic. All of it knowable in advance.
So stop comparing the stock to the strike. Compare your option’s cost to its price right now, and know your breakeven (strike plus premium) before you enter. Do that and in the money will never fool you again.