Reading the Tea Leaves.

Discussion in 'Options' started by Arnie Guitar, Dec 21, 2006.

  1. what he means (which I do think you know) is look at the IV of the 1500 call vs the IV of the 1400 put....big difference the higher IV's of the puts are what causes the price to be "inflated" compared to calls at the same distance from ATM

    thats why its so risky in this bullish environment to be selling calls.....
     
    #11     Feb 16, 2007