A notice to Noobs regarding Expiration friday.

[erol]

Quote from infolode:

Just a question: Do you people get liqueured-up and enter a trade with an unfamiliar instrument after reading a book or a blog?

I'm serious.

no... I just do this regularly on a friday or saturday night... =)

 

[SForce]

Quote from donnap:

Ah... are you using yahoo quotes? You should have been using real time quotes.

That quote isn't accurate.

Yes, because it was quicker and easier than logging in to my broker, I checked Yahoo.

So I checked two of my brokers chains and the quote for the ATM call was .05/.10

Market data for the last sale of the day shows as .15 - 130 contracts (at 4:20) All the last orders before actual close were .05/.10 .. Is there a reason you think Yahoo's quote would differ from any other source on an active option?

 

[dagnyt]

Quote from xflat2186:

Donna, I used the quotes the OP listed for the option and the stock to make a point that a dime is not the correct price.

He did not give a market for the stock.
He only gave the closing price of 25 cents ITM.

I think no professional, who wasn't short that call, would consider buying and then hoping to sell stock in the after hours.

At least, I never did.

Mark

 

[dagnyt]

Quote from donnap:

No, you pay interest for borrowing stock. Call prices discount that.

Last sale looks like .15 on TWS

You do not pay interest when you sell stock and get out of the trade the same day by exercising calls.

Mark

 

[dagnyt]

Quote from SForce:

Past that I could care less..

\

Agree completely.

A little bit of learning can be a dangerous thing

Mark

 

[dagnyt]

Quote from SForce:

Is there a reason you think Yahoo's quote would differ from any other source on an active option?

Yes. Yahoo quotes are wrong so often that it's dangerous to depend on their quotes.

Mark

 

[SForce]

Quote from dagnyt:

Yes. Yahoo quotes are wrong so often that it's dangerous to depend on their quotes.

Mark

For anything that overly matters I wouldn't rely on them either, but the only time I've ever noticed them wrong is when the option hasn't been traded that day. Yahoo lists the last price regardless if it was that day or not. .. Personally I think it should reset all last prices each day, but whatever.. I find it useful for quick estimates on the bid/ask/oi when I'm not logged into my broker.

 

[timbo]

Quote from SForce:

For anything that overly matters I wouldn't rely on them either, but the only time I've ever noticed them wrong is when the option hasn't been traded that day. Yahoo lists the last price regardless if it was that day or not. .. Personally I think it should reset all last prices each day, but whatever.. I find it useful for quick estimates on the bid/ask/oi when I'm not logged into my broker.

The last price is mostly useless; the market is b/a. Even though it's on yahoo, it's not their data.

 

[xflat2186]

Quote from SForce:

I didn't really pay much attention to whatever you were saying, I was just pointing out to whoever claimed the ATMs would not be priced at .05/.10 at any time that in fact they were. Past that I could care less..

Here is what I pointed out... if the stock is at .30 the call is intrinsically worth 30 cents so if you can buy it at .10 cents everyone would. Therefore your example or your data is wrong.

You can choose to take the " I could care less" attitude but you are basing that on wrong data.

 

[xflat2186]

All I am saying then is the DATA is wrong, those calls CAN NOT be priced there with the stock at .30 I can not happen, so either the stock or the options are wrong or from time stamps that are not truely identical.