Question regarding Option pricing-AMC Example

[taowave]

Yes,it was a slightly OTM option.I was only saying that an increase in vol does not increase the Delta for ITM...

Think of a garbage put becoming ITM..the only chance is a massive spike in vol..The prob of touch/Delta would increase,while the corresponding ITM call Delta would obviously have to go down..

Greeks are great,but an intuitive understanding of options goes a long way..

I think it was a slightly OTM call, though even with now an ITM call, wouldn’t the extrinsic premium be equal to the put price at the same strike, and therefore be affected by the same IV?
While I’ve stopped using greeks a long time ago because they’re like a blindfold blocking peripheral vision. I now mainly trade option combos and do peek at Delta and Vega to asses if I’m not totally off somewhere, but I use mainly historical option pricing to put together combos based on how the prices actually behave. Surprisingly (or not) I’m able to assemble combos without greeks that in the end do exhibit “proper greeks” like low delta (for low risk) and high Vega.
Which was my point here as well that greeks are just calculations based on prices, not the opposite. Someone came up with greeks after studying prices, so someone else can come up with “non-greeks”, name something “Broomhilda” and then use it to explain why the price is such and such.

 

[TrailerParkTed]

I sold some of the 145 calls the week before last at 2.60 the day before expiration. I guess it was 6/4. It was crazy that it was so high.

I get the selling, but who is buying it?

Someone on Robinhood chat bought the GME $300 calls($100,000) when stock was $150. He sold them when GME crossed $320 letting us know. Guys like him are buying crazy strikes and got paid. Most will not be as lucky as dilution comes.

 

[stepandfetchit]

If you go to the option chain, and load the Theo Price,Mark layout,you can make Vol/price/date adjustments

taowave: When did you first discover that? I just uncovered that this week and curious how long it existed. Had I known that existed last year, I would not have expended the effort to code my own.

 

[taowave]

Hmmm...I left IB 2 years ago and switched to TOS,so I am guessing 729 days ago

It's been there for a while

taowave: When did you first discover that? I just uncovered that this week and curious how long it existed. Had I known that existed last year, I would not have expended the effort to code my own.