Whats going on with the weeklys

E

eladaniel

Did anyone notice that the weeklys for aapl, amzn, fb , tsla and etc... became all crazy. The ask is way high, the delta is very low, an the spread also got wider. Any explanation?
 
eladaniel said:
Did anyone notice that the weeklys for aapl, amzn, fb , tsla and etc... became all crazy. The ask is way high, the delta is very low, an the spread also got wider. Any explanation?
More...

I don't trade those but earnings are coming up and vol is higher
 
MM's expand the bid/ask when the stock is trending.

If you see and extreme delta change, it might be your platform. That's an internal calc.
 
eladaniel said:
Did anyone notice that the weeklys for aapl, amzn, fb , tsla and etc... became all crazy. The ask is way high, the delta is very low, an the spread also got wider. Any explanation?
More...

aapl, amzn, fb, those have earnings this week --whenever there's a pending corporate event, IV goes up and is kept higher, which keeps the premium higher, til the event takes place.
Tesla made a big move from 195 to 219 in past 3 days, so my guess is that's what's causing it to keep the higher IV.
Also, like xandman said, spreads get wider when trending.
 
You must log in or register to reply here.
Back
Top