Why so much for only 2 days time value??

Discussion in 'Options' started by KINGOFSHORTS, Apr 16, 2009.

  1. Why would someone pay 50 cents for the GE 12 strike call that expires this April when it only has like 2-4 pennies of intrinsic value?

    Someone just bought 111 contracts and paid 51 cents.

    With only 5 cents intrinsic value.

    The 12 put is worth 44 cents. Calls going at 50-51 cents
  2. IV of 178%!!!! Maybe the reason?
  3. Still, I would not buy those calls.

    I could care less what the model says.

    I guess they are betting on GE blowing out earnings and rising up like a rocket friday.
  4. 12 Puts are similar - and I wouldn't buy Call or Put on GE. Anyway someone get the premium and maybe he's happy with it?
  5. Would be funny if GE gets pinned one or two cents at the strike :)

    Volume on the underlying is low at those over 12 prices.

    Probably will see a few nice big red ticks.
  6. Wow look at the volume on the calls. And the upticks.

    Now 12.17
  7. rickf


    ummmm because it's viewed by the Street as a "financial" stock and they're announcing earnings tomorrow?
  8. CET


    What he said, and financials reporting earnings in general creates volatility for all. Traders should have a big grin like the cat that just ate the canary.
  9. lol funny because IMO everyone thinks they're too cheap
  10. ..... a repeat of Google's April-2008 earnings report on the last trading day of the options. We'll see. :cool:
    #10     Apr 16, 2009