The 1230.00 PCLN weekly calls reached a high of $1.70. But why?

OTM-Options

OTM-Options

The 1230.00 PCLN weekly calls reached a high of $1.70. Does anyone have an explanation?

  • Previous close for the calls $0.70, open today at $0.50
  • Previous close for PCLN $1,197.76


There is no way that PCLN's $1201.41 high of the day (less than $4.00 from the previous close) would justify those options hitting $1.70. IMO ...... the high of the day should be about $1.00 at the very most - even $1.00 is pushing it.

This happens a lot with the PCLN calls, outrageous high of the day on options that are about to expire.


Screenshot-1_zps0tvsw17g.png


PCLN 1-day chart





:)
 
destriero said:
I was spreading the 1230s against other strikes. A limit order on a spread which often assigns fairly erroneous fills to the individuals.
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I think I found the other strike. The 1220 call at $2.79 - also grossly overpriced.


:)
 
How do you get those prices? I assume this is a credit spread.
  • 1230 call at $1.70
  • 1220 call at $2.79
As opposed to my guesstimate fair market price.
  • 1230 call at $0.70
  • 1220 call at $1.79

The end results are the same. I still don't fully understand the idea behind it.




:)
 
dont short pcln i learnt a hard way once and will never forget that individual stocks can move any amount any direction ,, in index only i trade now
 
darwin666 said:
dont short pcln i learnt a hard way once and will never forget that individual stocks can move any amount any direction ,, in index only i trade now
More...



It has nothing to do with shorting PCLN.

Take a look at xandman's screenshot in post #3, the PCLN 1230 calls were going for about $0.12 when that one call went for $1.70. This isn't a one time occurrence with the expiring OTM PCLN calls, it happens regularly.



:)
 
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