Complaint - GME liquidation problem which resulted in huge negative liquidation value

Discussion in 'Interactive Brokers' started by Baldur01, Feb 4, 2021.

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  1. Just out of curiosity, what were those options' strikes and maturities?
     
    #61     Feb 4, 2021
  2. Butterfly

    Butterfly

    what's the strike on those puts? also keep in mind that past volatility, if they go up, will increase the intrinsic premium

    don't think anyone is using the Black-Sholes model anymore :p
     
    #62     Feb 4, 2021
  3. Butterfly

    Butterfly

    there is not much you can do. Question: was that your first option? where did you learn first about options? did you at least had a crash course about them?
     
    #63     Feb 4, 2021
  4. Baldur01

    Baldur01

    Strike: 115
    Matrurity: 29.01
     
    #64     Feb 4, 2021
  5. Baldur01

    Baldur01

    Not my first option. Learned in university. I studied Finance.
     
    #65     Feb 4, 2021
  6. Butterfly

    Butterfly

    didn't they teach you about the importance of implied volatility, and the pricing arbitrage of put-call parity?
     
    #66     Feb 4, 2021
  7. Butterfly

    Butterfly

    Tabb says all options should be valued with the put-call parity, and you need to watch and track that equation for any "disruption" or "drift"
     
    #67     Feb 4, 2021
  8. terr

    terr

    Feb 19, strike 70. When stock was 310, they were $15.5 a couple of days ago, when the stock went a bit down then back to 310 they were $17. They are 23-25 right now.
     
    #68     Feb 4, 2021
  9. destriero

    destriero


    Dude could buy your lifestyle 1000x over.
     
    #69     Feb 4, 2021
  10. Butterfly

    Butterfly

    GME last @ $58 LOL

    put@70 = 70-58 = $12 intrinsic value
     
    #70     Feb 4, 2021
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