Why is IV so high with only 2 days to go for BBRY

Discussion in 'Options' started by Victor123, May 13, 2015.

  1. Why is the IV of the BBRY call options with only 2 days to go so high for ITM and OTM options?

    Should not less time to go imply less volatility, since there is less time for the stock to bounce around?
     
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  2. panzerman

    panzerman

    The phenomena known as volatility smile is probably at work here. The real analysis to be done is to look at a normalized IV surface and determine if the current IV smile is out of line with historic IV smiles.
     

  3. I would assume that any tidbit of news would have a big impact on BBRY - hence the high IV.


    I don't see why time would influence the IV. Unexpected news can come at anytime.


    :)