well, all puts are turning into smoke today

Quote from mikeenday:

another 5 figure loss day.

maybe I should quit reading zerohedge.com.

It happens. I was long on tuesday, got blown out on Wednesday and not recovered through today :(
 
Quote from mikeenday:

another 5 figure loss day.

maybe I should quit reading zerohedge.com.

5 figures? you mean like 325.86? :)

I read zerohedge but I have alternative sources for more a more neutral slant as well. Their negativity can affect me at times.

There is a lot of joy in the world as well.
 
Quote from mikeenday:

another 5 figure loss day.

maybe I should quit reading zerohedge.com.
Well, it could have been worse...

It could have been me! :)
 
Does anyone know why the Put premiums have typically been more expense than their Call counterparts over the last couple of years? Is it related to the interest rate calculation in the Black Scholes?

thanks,

Walt
 
I've been noticing this since almost mid 2008. Would you have any insight as to why?


Quote from trading spaces:

Puts have been more expensive than calls since october 1987.
 
Are you talking about put call parity (price of put - price of call of the same strike and maturity), or risk reversal (IV of put at a certain delta level - IV of call at the same delta level)?

Quote from jones247:

I've been noticing this since almost mid 2008. Would you have any insight as to why?
 
which ones? did you consider the dividend on the underlying?

when you sell a put you are taking a synthetic long position in the underlying, and that means you'll collect the dividend somehow, and increased premium is how.
 
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