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Strategies & Market Trends : Canadian Options

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To: Natty who wrote (1381)5/11/1999 10:18:00 PM
From: Natty  Read Replies (1) of 1598
 
...follow-up

A closer set of calculations upon arriving home show the put chain for Newcourt to work out around the published volatility (69.68), but the May and June calls are priced with a volatility of over 100% ... if I were to go for a strike of 25 in either August or September, things are closer to normal (as one would expect)...

What are the conditions for the TSE to extend the chain downwards? Will this make any difference, or are in the money calls likely to be as pumped up?

Natty
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