1000% Implied Volatility In GameStop

Oh youre right. My mistake. I forgot about that ruling.

 

The normal distribution used in financial models such as Black-Scholes is on the logarithm of the stock prices, which can be negative.

 

thats just one option. there are other models, such as brownian motion with reflecting barrier. probably other models not even published. but there is value in having a model

 

you can just take the logarithm of 1 plus the price, then it wont be negative. there are many books that discuss this.

 

I think Tabb discussed in one of his article that the BS model was just that, BS, and that you need to use the pricing arbitrage of the put-call parity to make your option bets

 

Dude, STFU. Where was the Mar19 synthetic in GME when the shares traded $300 last week? F*cking parrot. "Put/call parity... BWAAAAAACK!"

 

This is the dumbest post in the options forum today and someone asked "what products should i use delta hedging with?"

 

don't think Tabb is an idiot, you might want to find out a bit more about him

 

obviously to make the formula fit, you would use the "intrinsic value" as the premium for the missing contracts if you can't find them

but that went over your head

 

Who the fuck is Tabb?