DRYS Long Straddle

I am attaching a picture here of ThinkorSwims analysis of this stock and CBOE's Theoretical Listed Option Price.

If you would like to look at those attachments and comment please do.

ThinkorSwim has the Volatility of DRYS at 150%.

The last call and put for FEB 09 15's are at 1.95 and 3.22 respectively.

When I plug in an annual risk free int rate(12 month treasury .45) on the CBOE site and the 150% volatility I get a call price that is ~.20 higher than the last trade and a put price that is almost identical.

Questions and other upload pic is on next post
 

Attachments

Given that the options pricing picture below is more than the last trade, could we consider the price of the call option to be 'cheap' so to speak?

And for the Thinkorswim picture do you know how far the computer is going back to try and calculated the % odds of a stock falling between two prices or closing above or below a price.

I see that for FEB 09 the odds of DRYS closing above $15 is 45.8% and below $12.60 at 50.68%. AM I reading this right?

What should I be learning from these two pictures?

Any help is appreciated...
 

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Quote from urrterrible:

Damn I wish I would have gone through with this!!!

Feb 09 Puts are at 9.40
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I'm sure you do, but be careful here.

It's important to trade without emotions getting in the way. Once you've made a decision to make a trade, it's been made. Your job is to work with that trade and manage risk. Sometimes that means taking a loss. So be it.

If 'woulda, coulda, shoulda' becomes your mantra, you will never make it as a trader.

Mark
 
Quote from dagnyt:


If 'woulda, coulda, shoulda' becomes your mantra, you will never make it as a trader.

Mark [/B]
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Good advice, thanks...As you said once you've made a trade its been made...And once you haven't made a trade, you haven't move on...

Thanks...
 
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