X is traded to 19.51 today
x19Jul Put 16 has an ask price of .068 and makes + 3.08%
x19 Jul Put 17 has an ask price of 0.96 and loses -14.29%
Both options have the same theta and a difference of 2% in IV.
But i am suprised of the huge difference.
Why does the put which is closer to the stock price lose and the put which is more otm not but wins?
x19Jul Put 16 has an ask price of .068 and makes + 3.08%
x19 Jul Put 17 has an ask price of 0.96 and loses -14.29%
Both options have the same theta and a difference of 2% in IV.
But i am suprised of the huge difference.
Why does the put which is closer to the stock price lose and the put which is more otm not but wins?