Why are weekly options so expensive?
- Thread starter turkeyneck
- Start date
Good point but a little too subtle.
OP: Option premium in regard to UL price is linear. AAPL is 10x higher than $42,80 so thepremium for a 10x higher strike (43 vs 430) is 10x higher.
Orrrr... near the money AAPL options have an IV of approx 20%. Your call is right smack dab in the middle of that range. Expensive? No.
rmorse
Sponsor
AAPL vol looks close enough to me. It's hard to get an accurate IV on an option like that with 2 days to go. I would look to bet on earnings rather than movement over two days. If Turkeyneck feels the vol is too high, sell some if it fits your risk/reward.
In my experiance, selling options like that, just before earnings, when the most followed stock in the country is about to report earnings, is bad timing. Even though earnings are next week, the stock tends to move before also, as traders are getting positioned for earnings next week.
In my experiance, selling options like that, just before earnings, when the most followed stock in the country is about to report earnings, is bad timing. Even though earnings are next week, the stock tends to move before also, as traders are getting positioned for earnings next week.