Dumb Question, but what is the 'price' of an option...

Discussion in 'Options' started by 76132, Jun 7, 2011.

  1. 76132

    76132

  2. Last trade, perhaps?
     
  3. emg

    emg

    that is the premium. that is the value of the option
     
  4. 76132

    76132

    Hmm... I don't get it, the numbers don't make sense. If it's the premium, how come the 120 call has a higher premium than 115 call?
     
  5. emg

    emg


    because it is not liquid on the particular option strike price. Or there is not that many buyer and seller on that particular strike price at the moment
     
  6. rmorse

    rmorse ET Sponsor

    Last sale......Last sale on low volume names is often outside the markets.
     
  7. It's the last trade... The Jun 120 call last traded on the 27th of May at 13.
     
  8. Please be careful answering when you are unsure as you provide a answer that is 100% wrong. As many posters indicated here it appears to be LAST TRADE.

    Illiquidity or lack of buyers or sellers is not a reason for put/call parity or option arbitrage rules to get thrown out the window. :)
     
  9. emg

    emg

    i said at the moment based on the time stamp i posted. anything can happen within few milisecond
     
  10. I would go with Yahoo Finance for option quotes, Google Finance is useless when compared to Yahoo Finance.
     
    #10     Jun 7, 2011