The 1230.00 PCLN weekly calls reached a high of $1.70. But why?

The 1230.00 PCLN weekly calls reached a high of $1.70. Does anyone have an explanation?

• Previous close for the calls $0.70, open today at $0.50
• Previous close for PCLN $1,197.76

There is no way that PCLN's $1201.41 high of the day (less than $4.00 from the previous close) would justify those options hitting $1.70. IMO ...... the high of the day should be about $1.00 at the very most - even $1.00 is pushing it.

This happens a lot with the PCLN calls, outrageous high of the day on options that are about to expire.




PCLN 1-day chart

 

I was spreading the 1230s against other strikes. A limit order on a spread which often assigns fairly erroneous fills to the individuals.

 

Haha, yes. A one lot in an IRA.

 

I think I found the other strike. The 1220 call at $2.79 - also grossly overpriced.

 

How did you find it so fast? A skew playback?

 

But yeah, it was me.

 

How do you get those prices? I assume this is a credit spread.

• 1230 call at $1.70
• 1220 call at $2.79

As opposed to my guesstimate fair market price.

• 1230 call at $0.70
• 1220 call at $1.79

The end results are the same. I still don't fully understand the idea behind it.

 

dont short pcln i learnt a hard way once and will never forget that individual stocks can move any amount any direction ,, in index only i trade now

 

It has nothing to do with shorting PCLN.

Take a look at xandman's screenshot in post #3, the PCLN 1230 calls were going for about $0.12 when that one call went for $1.70. This isn't a one time occurrence with the expiring OTM PCLN calls, it happens regularly.