Tuesday, October 20, 2009

Re: [TheOptionClub.com] Options Price Theoretical vs Real

 

Hi Noel, with AAPL earnings for the last quarter out of the way, the options are now priced with a much lower Implied Volatility (IV). If you look at Thinkback (I am assuming you are using TOS), you will see that Nov ATM IV on 19th Oct is 38.61% and has reduced to 28.13% on 20th Oct. In percentage terms, this is a big reduction of 27% in one single day and is possibly the reason behind what you have seen.

Hope this helps.

Cheers Viky



On Wed, Oct 21, 2009 at 4:26 AM, NoelC <a0022417@airmail.net> wrote:
 

Did anyone think it was strange that Between yesterday and today and now,, the AAPL Call and most put Options were over 100% less than their theoretical value, Someone explain please

I had one that theoretically it should have been $3.90 and it hit a high of 1.60 for a split second at the opening and has been totally wrong ever since and after looking at all of the NOV chain its all wrong

What the Hell!

Noel


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