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To: jjstingray who wrote (67470)2/26/2003 3:43:55 PM
From: NOW  Respond to of 209892
 
IBM down 1.50 or so, puts down 20 cents.



To: jjstingray who wrote (67470)2/26/2003 3:48:05 PM
From: The Freep  Read Replies (1) | Respond to of 209892
 
jj -- that's not schwab specific, at least on the INTU example. I pull up a quote on those April puts and I get 3.3x3.5 though the stock is just above 44 at this point.

This type of stuff happens ALL the time. VIX dictates some of these changes, and around the strike price it can sometimes take big movement to get ahead. It's yet another way the option writers win, I guess, though I don't understand black-scholes and the other variables enough to fully comprehend it.

the freep



To: jjstingray who wrote (67470)2/26/2003 4:05:41 PM
From: ajtj99  Respond to of 209892
 
The VIX is everything in cases like this. The higher the volatility, the more expensive the options. If you really want to see how this has an effect, buy USPIX just before a melt-down and watch how it goes 2.5X the inverse of the NDX instead of 2X due to the options.


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