Just for fun - guess the stock or etf

Discussion in 'Options' started by JJacksET4, Mar 13, 2009.

  1. There is a stock or etf that as I am typing this is quoted at about 42.70.

    The options on this stock have higher premiums then one would usually expect.

    There are calls all the way up to 400 strikes and the OCT 400 strike calls actually are listed as bid $155/ask $235 as I enter this.

    What is the stock or etf?

    I will post the answer here later today.

  2. rluser



    what do i win?
  3. You win the title of first to answer. :)

    I'm surprised someone got it so quickly. It's pretty amazing to me how high the FAZ options are priced. If a person really thinks it's going to 400 or more, wouldn't they do pretty well just buying FAZ?

    Thanks for the answer.

  4. rluser


    I cannot imagine a good reason to be buying or selling calls so far out of the money which expire so long from now on a leveraged ETF with such an enormous spread on those calls.

    If one is merely betting for (near) collapse of the entire financial system, how is he going to collect in a timely fashion?

    Perhaps someone else has an idea, but I shall not worry myself much about it: it's someone else's money :)