Wednesday, October 21, 2009

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

 

Christian,
How do you do this overlay?


"""If I overlay the stock movement on the option price action I see that implvol is slowly being sucked out (incl theta decay) as time passed. """


With a big drop being earnings. Though I would add that should not surprise anybody.

Christian Gross

--- In OptionClub@yahoogroups.com, "NoelC" <a0022417@...> 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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The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading.  All messages and postings, and any materials circulated are provided for discussion and educational purposes only.  No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice.  All investors are encouraged to consult a qualified professional before trading in any security.  Stock and option trading involves risk and is not suitable for most people.  There is no guarantee that any information provided is accurate and, may in fact, be wrong.  It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student.  As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source.

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