Why are weekly options so expensive?

[turkeyneck]

Take AAPL Jan 21 430 Call for example. It's currently OTM but has 2.05 time premium with only 2 trading days to go. The time decay won't usually start to accelerate until around 3pm ET on Friday. Any idea?

 

[Random.Capital]

What do you think the price "should" be?

 

[ForexForex]

They are not expensive. AAPL goes up 1% over the next two days and they will be worth $3.10, that's a gain of 50%. How often does AAPL move 1%?

Also they are not the weekly options, they are the standard monthly options.

 

[rmorse]

If it were a stock trading at $42.80, would you think the 43 strike call was expensive at $0.21?

 

[tradingjournals]

Quote from turkeyneck:

Take AAPL Jan 21 430 Call for example. It's currently OTM but has 2.05 time premium with only 2 trading days to go. The time decay won't usually start to accelerate until around 3pm ET on Friday. Any idea?

Why do you find it expensive?

 

[tradingjournals]

Quote from turkeyneck:

Take AAPL Jan 21 430 Call for example. It's currently OTM but has 2.05 time premium with only 2 trading days to go. The time decay won't usually start to accelerate until around 3pm ET on Friday. Any idea?

What is the price of the call at 440?

 

[trader198]

not about expensive or cheap.

when you have those concepts, your trading is doomed.

Quote from turkeyneck:


Take AAPL Jan 21 430 Call for example. It's currently OTM but has 2.05 time premium with only 2 trading days to go. The time decay won't usually start to accelerate until around 3pm ET on Friday. Any idea?

 

[turkeyneck]

Quote from Random.Capital:

What do you think the price "should" be?

Theoretical value says 1.31 on my screen.

 

[turkeyneck]

Quote from tradingjournals:

What is the price of the call at 440?

0.21

 

[atticus]

Quote from turkeyneck:

Theoretical value says 1.31 on my screen.

You're using HV as your vol-input? A nearly atm call in AAPL with 2 trading days for 1.31? GIGO.