Online Stock Trading Software

How did my option pricing lose $1.00 when there was little to no change on the stock?

Earlier today I received a call from a PowerOptions subscriber. He is the owner of a far out in time put option on MOMO and the stock was up about $0.35 in the morning (Stock MOMO, at $25.76 from $25.41 at close on FEB 14th). The put option he purchased was the 2017-JULY 30 strike. At close on FEB 14th the bid-ask spread was listed at $6.60 to $7.20 – figure a mid-point price of about $6.90. Note: A wide bid-ask spread is not uncommon for options that are far out in time and not actively traded. When he looked at his brokerage account this morning, it showed a value of $5.90, down -$1.00. But the stock had only moved up +$0.35. The delta of the put option was about -0.60, and increase of $0.35 in the underlying should have dropped the put price by only -$0.24. So, what gives?…

Stock Option Investment Advice

SIV – Stock Implied Volatility and Stock Earnings

Q: What is the SIV data and search parameter that PowerOptions provides? A: As you know, historical stock volatility can be measured in many ways: 20-day volatility, 50-day volatility, 100-day volatility, etc. Rather than use the historical trading range of the stock to measure volatility, investors will use the SIV.