Hello, I am rather new to options but I am looking right now at RBLX options exp. feb 18'22. RLBLX is $67 and at the money options are about $7.20 which is like 11% Even stocks like PTON, MRNA don't have such high premiums. How is that possible?
Cool , thank you that makes sense. Do you think that might be an indication that earnings will be good? Price is falling but premiums are still very high.
no. It’s just a market prediction that the stock will move a lot (up or down) on the earnings announcement.
No, but than again I would ask Van on Stoney’s GBA. He’s called RBLX spot on with earnings. Options MMs blundered on FB and SNAP.
Bingo, kind of obvious if FB got crushed. Maybe the CC will have better news than the algos view of their outlook? The Options MMs usually call these correct, interesting.