Altaba Inc. (formerly Yahoo) Message Board

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Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

0.0%

Nov 6 4:00 PM EST

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To: Don Westermeyer who wrote (1516)	9/12/1997 6:40:00 PM
From: Mama Bear	of 27307

>>>I noticed call prices actually increased in the face of lower stock price.<<< Umm, do you understand what implied volatility is? I noticed yesterday that the puts had increased in spite of the stock being up. I bought my Jan40 puts at 2 1/2, which was the ask (Bid was 2 1/8) in the morning, when the stock was ~55 3/4, the stock closed over 56 but my puts b/a was 2 5/8 x 2 13/16. Every time the stock jumps up or down the implied volatility increases, which can increase the price of an option despite having the price of the stock go in the opposite direction. If you want to, you can learn the formula the option specialist use to calculate the price at: fortitude.com Of course, supply and demand is also at work here. What really surprised me was that the open interest put:call ratio was almost 1:1 at the close yesterday. As of today's close there are 3388 open call contracts, and 3406 open put contracts, still darn close to 1:1. FWIW Barb

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