am I missing something?

Discussion in 'Options' started by just_dabbling, Jan 30, 2003.

  1. stokhack

    stokhack

    White, exactly time value. You need to go one strike ITM to get corresponding movement with price. This only applys to short term options. Longer term more time value(premium) so less movement. Look up mavericks threads, lot of good stuff there.
     
    #31     Jan 30, 2003
  2. qdz2

    qdz2

    That's okay. It's not you fault.

    One thing that you phDs must understand is that every post replying in your thread is not necessarily solely for you to read. Under the umbrella of the original topic, replies should be also helpful to as many readers as possible, at least not misleading them.

    :p

     
    #32     Jan 30, 2003
  3. qdz2

    qdz2

    Probably divdend today was overlooked?

    :p
     
    #33     Jan 30, 2003
  4. stokhack

    stokhack

    Also look at trajans option journal, also good stuff.
     
    #34     Jan 30, 2003
  5. How much should the put move? An ATM generally has a delta of around .5, so half as much as the stock. The more time value, the less(+ or -) delta. The puts you looked at were probably pumped up ahead of an earnings report and lost some iv afterwards.
     
    #35     Jan 31, 2003

  6. Humble indeed, Your Highness.

    I beg you pardon the uncouth heathens that have presumed so much as to exercise their simple minds here - I assure you they mean well, in their own savage and pathetic ways. It is not their fault they do not possess the requisite social graces and education to converse at your esteemed level.
     
    #36     Jan 31, 2003
  7. But he said this big cap stock went down ~25% in a single day. No matter how much the IV was anticipating the earnings, a 25% drop in the underlying will make those ATM puts way ITM. And such a large drop in underlying price almost always increases IV.

    No way those puts don't move, a lot.
     
    #37     Feb 6, 2003

  8. Exactly!
     
    #38     Feb 6, 2003