Why so much for only 2 days time value??

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

  1. LOL. yup.

    In a strangle and a straddle... (too much of a pussy to go completely long.) :p

    Check out the volume on the closest strikes. (Almost even....and huge). So I would imagine i've got company on this idea.

    Would think this thing would rocket if they blow-out or is delta hedging not gonna be a factor?
     
    #11     Apr 16, 2009
  2. If it "rockets", especially to the upside, the gamma-scalpers who've bought options, may bring it back to "Earth"......and to the 12 strike price. We'll see. :cool:
     
    #12     Apr 16, 2009
  3. Here is a graphical image that may help show collapsing volatility like the GOOG april straddle.:p
     
    • vol.jpg
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    #13     Apr 16, 2009
  4. lol some of those GOOG options were up 10000% (maybe more) the next day if I remember correctly.

    Definitely not something you ever see, and GE won't even come close BUT it's worth it IMO.

    Especially for such a FINE stock like GE. jk ;)
     
    #14     Apr 16, 2009
  5. Yeah I got a few of those, somewhat binary but the risk reward is pretty good. I was going to buy some out of the money GOOG calls but decided I don't really KNOW what the outcome is, I am not alone. Tomorrow should be an interesting day for GOOG. :)
     
    #15     Apr 16, 2009
  6. street 22, GE 26 cents earnings
    some were predicting 17 cents.

    Premarket 12.90
     
    #16     Apr 17, 2009
  7. i guess the april 12 puts i sold for .42 will be ok then. thanks for the heads up.
     
    #17     Apr 17, 2009
  8. There is a fat 612K order lodged up at 12.40

    Well I would close out those puts and get rid of the obligation.
     
    #18     Apr 17, 2009
  9. GE crossing 12.60 with decent volume.

    May 13 calls are strong.

    14 pretty decent.

    Enough buyers to absorb these prices it seems.

    plenty of volume and OI on the 13,14 calls and less on the puts by a decent margin.
     
    #19     Apr 17, 2009
  10. Calls and puts in the same strike are the same exact option for all real purposes. So volume on one side being greater than the other is meaningless. That does not even take into account that you dont know what the volume is. Opening or closing buys or sells? Who initiated which side?
     
    #20     Apr 17, 2009