It's not terribly complex. The 360Cs went off at 3.70bx4.30a, or 4.00 mid. That's fairval. The 35-point otm Aug calls will close <1.50 tomorrow, whatever strike that happens to be.
exactly howdo u get from 4 to less than 1.5 the 4 0clock price of isrg was about 325. the 360 call had a fv of maybe 4. thanks
I model/trade event volatility for a living. 35 point otm will be 1.50 or lower for August calls by tomorrow-close. I expect some down and out skew, so the puts (35-40 otm) may be slightly bid compared to the equidistant otm calls (dime or so).
" I model/trade event volatility for a living. 35 point otm will be " if 35 pts out of the money is 4 today why should it not be 4 tomorrow?
huh. .exactly... the EARNINGS is what. .makes the premiums insane. .ha ha.. sometimes when I scan and i find something very lucrative and tempting. the first thing I suspect is. . pre earnings. even very slow moving stocks like MSFT JNJ PEP give good premiums .pre earnings... but when u r suspicious or not sure.. there is no hurry.. u can always play post earnings also..
-------------------------------------------------- Quote from spindr0: ....free money parade! -------------------------------------------------- That's a nice way to descibe that tin cup with monkey act. Nice look!
Maybe even worse than 1.5 or 2 given so much time left. But that's a moot (even mute) point since it dropped. Nice trade!