Why are weekly options so expensive?

Discussion in 'Options' started by turkeyneck, Jan 18, 2012.

  1. Take AAPL Jan 21 430 Call for example. It's currently OTM but has 2.05 time premium with only 2 trading days to go. The time decay won't usually start to accelerate until around 3pm ET on Friday. Any idea?
  2. What do you think the price "should" be?
  3. They are not expensive. AAPL goes up 1% over the next two days and they will be worth $3.10, that's a gain of 50%. How often does AAPL move 1%?

    Also they are not the weekly options, they are the standard monthly options.
  4. rmorse

    rmorse ET Sponsor

    If it were a stock trading at $42.80, would you think the 43 strike call was expensive at $0.21?
  5. Why do you find it expensive?
  6. What is the price of the call at 440?
  7. not about expensive or cheap.

    when you have those concepts, your trading is doomed.

  8. Theoretical value says 1.31 on my screen.
  9. 0.21
  10. You're using HV as your vol-input? A nearly atm call in AAPL with 2 trading days for 1.31? GIGO.
    #10     Jan 18, 2012