Explain this price action?

Discussion in 'Options' started by jimmyjazz, Dec 8, 2017.

  1. Sure, I can use underlying + option price information, days to expiry, etc. and back out estimates for initial and current volatility. I remain puzzled that volatility dropped when price dropped, and not an insignificant amount.
     
    #31     Dec 15, 2017
  2. sle

    sle

    You bought vol when it was bid up, partly because of the recent 20+% drop in spot. After that, the stock did not realize much and people got rid of it. This type of stuff happens.
     
    #32     Dec 15, 2017
  3. Yeah, that makes sense. Maybe selling OTM puts would have been a little smarter. I wouldn't have screamed about assignment.
     
    #33     Dec 15, 2017
  4. spindr0

    spindr0

    OK, splain this one to me Ricky. It's after hours on IBKR and I'm hitting the bid to sell some of an illiquid stock. I click and the bid disappears. I cancel and the bid reappears. I hit it again and the bid is gone. Is this some sort of HFT speed advantage over me or is there something else? Spoofing?
     
    #34     Dec 15, 2017
  5. That's God telling you it's time for a beer.
     
    #35     Dec 15, 2017
    jordanwrong likes this.
  6. sle

    sle

    I assume you are talking to me? :) it is HFT playing games.

    PS. @jimmyjazz is totally right
     
    #36     Dec 15, 2017
  7. spindr0

    spindr0

    I don't drink anymore so could I just have my order filled instead of my glass???

    :confused: :D
     
    #37     Dec 15, 2017
  8. Sure, but can I have your beer?
     
    #38     Dec 15, 2017
  9. LOL . . . SOXL is up 6% from the point where I purchased these calls and I'm still a bit underwater. I'm gonna get vanity plates that read "IH8VOL".
     
    #39     Dec 18, 2017
    sle and spindr0 like this.
  10. Took off half the calls @ $2.85 for a negligible profit. I'll watch the rest. (Watch it drop like a rock now.)
     
    #40     Dec 18, 2017
    murray t turtle likes this.