Lisa,
I have determined that the pricing is relative to the delta of the stock, which fluxes and is in relation to what is going on currently, meaning that pricing could not have predicted CPQ announcing or the backlash that it will mean to other stocks.
I do feel that it has a trend impact, if news isnt so involved as it has been these last few days.
Last year when DELL was running as well as when AOL was running, also when IBM was regaining to the 100's a while back, the pricing was below market as per a set delta. So I feel that if everything else is "peaceful" pricing shows a trend, how it is behaving.
I have noticed the same thing with other stocks I want to CC. Say like my INEL, I bought it at 4 13/16 and the calls I wanted to sell were always undervalued, and I wanted more than was being given. The same with VVUS, ZITL and a few others. Needless to say I was called out of ALL 3 that next period.. INEL went from 5 to almost 8, quite a move.
There is definately correlation. And I am going to figure it out, and start trading it..
I am crossing my fingers for tomorrow..
E |
