Complaint - GME liquidation problem which resulted in huge negative liquidation value

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terr said:
Butterfly: ... especially with crazy volatility stocks like GME. Feb 19 70 puts when the stock was 310 were 15.50. Around 23 today. I mean... stock is down 80%, the puts went up just a bit :) Not that I didn't expect that but still.
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what's the strike on those puts? also keep in mind that past volatility, if they go up, will increase the intrinsic premium

don't think anyone is using the Black-Sholes model anymore :p
 
Baldur01 said:
Thank you, everyone for posting help/opinion. Unfortunately, the answers moved to an unproductive direction. Hence, this will be my last post.
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there is not much you can do. Question: was that your first option? where did you learn first about options? did you at least had a crash course about them?
 
Butterfly said:
there is not much you can do. Question: was that your first option? where did you learn first about options? did you at least had a crash course about them?
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Not my first option. Learned in university. I studied Finance.
 
Tabb says all options should be valued with the put-call parity, and you need to watch and track that equation for any "disruption" or "drift"
 
Butterfly said:
what's the strike on those puts? also keep in mind that past volatility, if they go up, will increase the intrinsic premium

don't think anyone is using the Black-Sholes model anymore :p
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Feb 19, strike 70. When stock was 310, they were $15.5 a couple of days ago, when the stock went a bit down then back to 310 they were $17. They are 23-25 right now.
 
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