Regarding IV, how does dumping call contracts affect the IV of the underlying stock? OTOH, on Wednesday I can see that a stock that moves 4% in one day, the underlying demonstrates more (implied?) volatility, thus further pumping the cost (price) of the calls.
Its the other way around I think. supply/demand affects option pricing, and IV is derived from the price of options. historical volatility of the stock isn't really the same thing as implied volatility of options.
