Why so much for only 2 days time value??

[KINGOFSHORTS]

Why would someone pay 50 cents for the GE 12 strike call that expires this April when it only has like 2-4 pennies of intrinsic value?

Someone just bought 111 contracts and paid 51 cents.

With only 5 cents intrinsic value.

The 12 put is worth 44 cents. Calls going at 50-51 cents

 

[TrailingStop3]

IV of 178%!!!! Maybe the reason?

 

[KINGOFSHORTS]

Quote from TrailingStop3:

IV of 178%!!!! Maybe the reason?

Still, I would not buy those calls.

I could care less what the model says.

I guess they are betting on GE blowing out earnings and rising up like a rocket friday.

 

[TrailingStop3]

12 Puts are similar - and I wouldn't buy Call or Put on GE. Anyway someone get the premium and maybe he's happy with it?

 

[KINGOFSHORTS]

Would be funny if GE gets pinned one or two cents at the strike

Volume on the underlying is low at those over 12 prices.

Probably will see a few nice big red ticks.

 

[KINGOFSHORTS]

Wow look at the volume on the calls. And the upticks.

Now 12.17

 

[rickf]

ummmm because it's viewed by the Street as a "financial" stock and they're announcing earnings tomorrow?

 

[CET]

Quote from rickf:

ummmm because it's viewed by the Street as a "financial" stock and they're announcing earnings tomorrow?

What he said, and financials reporting earnings in general creates volatility for all. Traders should have a big grin like the cat that just ate the canary.

 

[athlonmank8]

lol funny because IMO everyone thinks they're too cheap

 

[nazzdack]

Quote from KINGOFSHORTS:
I guess they are betting on GE blowing out earnings and rising up like a rocket friday.

..... a repeat of Google's April-2008 earnings report on the last trading day of the options. We'll see.