am I missing something?

Volatility droped?

How about this? Tell me the ticker symbol. I'd like to see this free lunch which is not likely be true without an explanation.



Did you mis-read? Make sure you read CALL/PUT prices as you meant to, respectively.

 

Where did you see dropped? I said it spiked. Again, there's is no free lunch. The free lunch is in the equities position I'm trying to hedge and no I'm not gonna tell you where that one is . I only need the options for protection against those occasional times when the lunch is not there to put it mildly...

 

I was looking at the right places. The problem was (I think) the quotes CBOE.com provides besides being delayed are very poor quality and don't reflect the true action.

 

Yeah, I should say if volatility changed. Well, keep the lunch to yourself since you chose to do so. Good luck.

 

I suspect that, as QDZ mentioned above, the may have been some uncertainty about the underlying leading up to the open. That uncertainty was resolved and the vol dropped rather than spiking. I got burned that way several years back on some OEX puts going into a FED meeting. The Fed did indeed raise rates and the uncertainty of their decision was removed and vols collapsed as did the put's premium. This may be what you experienced.

 

Did you notice the plethora of disclaimers at the bottom of the page?

 

Makes sense. Except I wasn't talking about an individual case and it just can't be always the case . It seems to be that way pretty much all the time I look. I think it's b/c the quotes I look at suck.
Thanks.

 

Any good alternatives out there (not outrageously expensive)?

 

JD; i've never seen the CBOE quotes. What are you using to determine IV ? Is there a column for that on their screens?

Also, you could give us the specifics w/o the name of the underlying. Wouldn't be as helpful though. Even so I don't think there is enough horsepower on these boards to affect an individual large cap issue, and I doubt that most here would take advantage of you even if they could.

 

JD: sorry, I just re-read one of your posts and realized you're saying this is common. If you're using delayed quotes you're asking to get your head handed to you IMO. Adequate data doesn't cost.