well, all puts are turning into smoke today

Discussion in 'Options' started by mikeenday, Nov 11, 2011.

  1. mikeenday

    mikeenday Guest

    another 5 figure loss day.

    maybe I should quit reading zerohedge.com.
     
  2. Did you buy some of my november 117 puts at 2.25?
     
  3. It happens. I was long on tuesday, got blown out on Wednesday and not recovered through today :(
     
  4. 5 figures? you mean like 325.86? :)

    I read zerohedge but I have alternative sources for more a more neutral slant as well. Their negativity can affect me at times.

    There is a lot of joy in the world as well.
     
  5. Well, it could have been worse...

    It could have been me! :)
     
  6. Does anyone know why the Put premiums have typically been more expense than their Call counterparts over the last couple of years? Is it related to the interest rate calculation in the Black Scholes?

    thanks,

    Walt
     
  7. Puts have been more expensive than calls since october 1987.
     
  8. I've been noticing this since almost mid 2008. Would you have any insight as to why?


     
  9. Are you talking about put call parity (price of put - price of call of the same strike and maturity), or risk reversal (IV of put at a certain delta level - IV of call at the same delta level)?

     
  10. which ones? did you consider the dividend on the underlying?

    when you sell a put you are taking a synthetic long position in the underlying, and that means you'll collect the dividend somehow, and increased premium is how.
     
    #10     Nov 11, 2011