Options are worth an intrinsic value (the current stock price vs the strike price of the contract) and an extrinsic value (the implied volatility of the stock).
Large or sudden moves increase the volatility greatly which can result in the extrinsic value being multiples more than the intrinsic, and this is what leads to the wild profit capability of options.
At the same time, without those moves, or the lack of any umoves, that value can also rapidly decrease and leads to those options being quickly worthless.
Large or sudden moves increase the volatility greatly which can result in the extrinsic value being multiples more than the intrinsic, and this is what leads to the wild profit capability of options.
At the same time, without those moves, or the lack of any umoves, that value can also rapidly decrease and leads to those options being quickly worthless.