Question regarding Option pricing-AMC Example

Discussion in 'Options' started by antares66, Jun 12, 2021.

  1. taowave

    taowave

    Yes,it was a slightly OTM option.I was only saying that an increase in vol does not increase the Delta for ITM...

    Think of a garbage put becoming ITM..the only chance is a massive spike in vol..The prob of touch/Delta would increase,while the corresponding ITM call Delta would obviously have to go down..

    Greeks are great,but an intuitive understanding of options goes a long way..


     
    #11     Jun 12, 2021
    BlueWaterSailor and guru like this.
  2. Someone on Robinhood chat bought the GME $300 calls($100,000) when stock was $150. He sold them when GME crossed $320 letting us know. Guys like him are buying crazy strikes and got paid. Most will not be as lucky as dilution comes.
     
    #12     Jun 12, 2021
  3. taowave: When did you first discover that? I just uncovered that this week and curious how long it existed. Had I known that existed last year, I would not have expended the effort to code my own.
     
    #13     Jun 18, 2021
  4. taowave

    taowave

    Hmmm...I left IB 2 years ago and switched to TOS,so I am guessing 729 days ago :)

    It's been there for a while

     
    #14     Jun 18, 2021
    stepandfetchit likes this.