Whats going on with the weeklys

Discussion in 'Options' started by eladaniel, Apr 22, 2014.

  1. eladaniel

    eladaniel

    Did anyone notice that the weeklys for aapl, amzn, fb , tsla and etc... became all crazy. The ask is way high, the delta is very low, an the spread also got wider. Any explanation?
     
  2. Dolemite

    Dolemite

    I don't trade those but earnings are coming up and vol is higher
     
  3. xandman

    xandman

    MM's expand the bid/ask when the stock is trending.

    If you see and extreme delta change, it might be your platform. That's an internal calc.
     
  4. aapl, amzn, fb, those have earnings this week --whenever there's a pending corporate event, IV goes up and is kept higher, which keeps the premium higher, til the event takes place.
    Tesla made a big move from 195 to 219 in past 3 days, so my guess is that's what's causing it to keep the higher IV.
    Also, like xandman said, spreads get wider when trending.
     
  5. eladaniel

    eladaniel

    yeah thats what I figured, thanks anyway.