what the hell?? Whats up with liquidity?

Quote from James3313:

xlf makes a .58% move and the NOV ATM options have no reflections whatsoever. The bid ask didn't even move...

still bid @ 1.74 / ask 1.80

Not to mention the spreads. A 6 point spread. That was unheard of before 9-22-08.

What happened??

What happened is very simple. Implied volatility was very high. It dropped.

When that happens the prices of both the puts and calls decline.

Mark
 
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