X, This is not only soft, it is, IMHO, no science at all. Basically, on the way down, there were more sellers than buyers. On the way up, that turned around. The quant jocks explain this by simply increasing volatility inputs or growth assumptions on their calculators. I have noticed that fair value tends to follow price, not the ohter way around.
Although I like Larry McMillan's "Options As a Strategic Investment" as a basic text, the best for pricing models is Gary Gastineau's book. I can't remember the name, but if you look up Gary in the author category on Amazon.Com, you can probably find it. BTW, I don't agree with much of what he says, but I do like and respect the guy.
The CBOE site also has a listing of books on options.
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