I was looking at FAS and FAZ today. One thing I noticed while watching the option chain was that while FAS was down less than a dollar both the calls and puts were trading at a loss!!! The put should have been showing some kind of minimal gain to offset the loss suffered by the call. What gives? Is there something in he nature of the leverage? Any thoughts? Just trying to be logical. Thanks.
Options premium on 3X etfs were killed today because of the drop in volatility. Did you look at VIX today?
Market direction is only one piece of that puzzle, volatility and time decay the other and don't forget that options pricing fluctuates a lot. It is probably the most inefficient pricing I have seen in the markets despite many arbitrage house working those markets.