A notice to Noobs regarding Expiration friday.

[SForce]

Quote from 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.

Ok The data I posted was not wrong and you could just as easily check it.

Let's try something.

Was the 430 call at EOD ATM?
Was the 430 call at EOD priced at .05/.10?
That is all I was pointing out in response to you saying that the GOOG ATM option would never be priced that low even at EOD on expiration.

If you have a problem with how the option was priced and you think it was priced wrong, then call the CBOE or the exchanges that were quoting that price. Don't sit here and tell me it should be priced differently.

 

[SForce]

Quote from 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.

So my broker's quotes and the ISE data feed is wrong, and you are right because theoretically it _should not_ be priced like that. That's nice. Since you were proven wrong, the exchanges and everyone else was doing it wrong.

Let me put it another way. If the stock was going for 430.10 at EOD how much should the calls be selling for?

 

[dagnyt]

Quote from SForce:



Let me put it another way. If the stock was going for 430.10 at EOD how much should the calls be selling for?

What the stock is 'going for' is not material. What's the BID?

If the stock is 10 cents bid, the calls should be 8 or 9 cents bid.

Mark

 

[SForce]

Quote from dagnyt:

What the stock is 'going for' is not material. What's the BID?

If the stock is 10 cents bid, the calls should be 8 or 9 cents bid.

Mark

Oh I understand that and I understand what he's saying, but there's a difference between what should be and what actually is. .. that and I've got nothing else to do right now so endlessly replying to him is no big deal.

 

[donnap]

Quote from SForce:

there's a difference between what should be and what actually is. ..

Yes, and it's not so much that your data was incorrect, it's just highly unlikely that it was tradable information.

There's a difference between that data and attainable prices.

You do realize that you are talking about the last 5-10 secs of RTH on expiry Friday.

That's when GOOG jumped a little from around 430 to 430.20+.

If you are familiar with GOOG you know that the B/A is often fairly wide .20+ even during RTH. But no big deal for a 400+ stock. But that means that the 430.25 print is not the guaranteed price that iit could be sold at.

But let's say that you could sell GOOG at 430.20+ We are talking about the last 5-10 secs of trading in an expiring option. Some exchanges had higher asks but at least 2 had the .10, I believe.

That .10 price couuld have been stale. You may have tried to pick it off only to have the order hesitate and then the message, "the exchange is closed."

There are other scenarios but had similar pricing occurred earlier in RTH then it would have been picked off quickly or the option quote was stale.

 

[SForce]

Quote from donnap:

Yes, and it's not so much that your data was incorrect, it's just highly unlikely that it was tradable information.

There's a difference between that data and attainable prices.

You do realize that you are talking about the last 5-10 secs of RTH on expiry Friday.

That's when GOOG jumped a little from around 430 to 430.20+.

If you are familiar with GOOG you know that the B/A is often fairly wide .20+ even during RTH. But no big deal for a 400+ stock. But that means that the 430.25 print is not the guaranteed price that iit could be sold at.

But let's say that you could sell GOOG at 430.20+ We are talking about the last 5-10 secs of trading in an expiring option. Some exchanges had higher asks but at least 2 had the .10, I believe.

I have no idea where this thought of whether Google shares would be tradable at that price came from. The point was that someone pointed out that Google ATM calls never trade for .05/.10 even eod on expiration. I simply was pointing out that yes, an ATM Google call can trade that low and did trade that low just days after he posted his comment.

If you look back the the posts, you'll find that this discussion is all fairly irrelevant. I continue to reply because my point is still valid. They did sell for .05/.10 and I could buy them for .05/.10 if I wanted to. .. Although, yes, it would've been a waste since not many sales in AH were over 400.10

 

[spindr0]

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Quote from donnap:

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

That quote isn't accurate.
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Quote from SForce:

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

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

Yahoo is notorious for the crap you find on it

 

[spindr0]

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.

If I bought every one of those calls I could for a dime and sold the stock at .30 the cost to borrow that stock and deilver it via exercise is less than a penny there are 19 other cents of pure P and every other professional and their brother would be doing it.

Even an amateur like me would do it !

 

[spindr0]

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.

Who needs to read a book or blog to do that ???

 

[donnap]

Quote from spindr0:

Who needs to read a book or blog to do that ???

LOL Spin. Thanks for bumping this one up. I was hoping it would just fade away.
(oops, mia culpa)

Shades of yahoo MBs or "you can lead a monkey to water...."