newbie question on option pricing and possible crash

[erol]

The literature I read really didn't talk about options before expiration, especially with spreads.

They're always expiration graphs, and the decay I had to "experience".

Anyways, there's only so much you can learn from reading.

Any losses incurred from a lack of knowledge/experience I would call "tuition".

 

[spindr0]

Quote from trc4949:

and I am wondering how I calculate what the option price would be in a stock market crash scenario?

The CBOE offers a free option calculator in its OPTIONS TOOLBOX which can be downloaded at:

http://www.cboe.com/LearnCenter/Software.aspx

 

[spindr0]

Quote from erol:

Any losses incurred from a lack of knowledge/experience I would call "tuition".

But it's nicer not to attend an Ivy League school

 

[athlonmank8]

OptionsOracle. You need to determine your own Vega for price moves, but it's seriously a good piece of software.

 

[trc4949]

Quote from tommylove3:

can you give the time and date, price paid or credited of your dec 14 xlf put

Got it this past friday at .58 about 11 am.

why?

 

[exaltedangel09]

I don't have the same option prices:
http://finance.yahoo.com/q/op?s=XLF&m=2009-12

You paid 58 cents for 10$ puts on the XLF. I hope you mean 0.058 cents.

 

[trc4949]

Quote from exaltedangel09:

I don't have the same option prices:
http://finance.yahoo.com/q/op?s=XLF&m=2009-12

You paid 58 cents for 10$ puts on the XLF. I hope you mean 0.058 cents.

No, not the Dec 10 put, the Dec 14 Put.

 

[athlonmank8]

Quote from exaltedangel09:

I don't have the same option prices:
http://finance.yahoo.com/q/op?s=XLF&m=2009-12

You paid 58 cents for 10$ puts on the XLF. I hope you mean 0.058 cents.

lol unreal. There's programs for reading out there now.

 

[mastertrader12]

lrm21, thanks for posting that link. It's really helpful.

 

[kinggyppo]

Quote from trc4949:

No, not the Dec 10 put, the Dec 14 Put.

I think what people are trying to show you is that you can figure this out yourself with any of the free option calculators. We can figure it out for you but that probably isn't going to teach you anything. So take todays closing price, figure out the volatility from the closing price punch it into a pricing calculator and voila you have your answer. Options guys tend to go straight over your head. Here is a screenshot from NumaWeb. I have found if you are polite option guys will bend over backwards to help you. Post your questions articulately so that lurkers can benefit.

http://www.numa.com/cgi-bin/numa/calc_op.pl