Search the Community
Showing results for tags 'puts'.
Found 2 results
-
Hello, can someone answer the following for me please. If X is trading at $50 and I sell (write) a put at $40 with a 90 days expiry for a premium (per share) of $1 The above numbers are just for illustration After 45 days X is trading at $43 and I am worried it might hit the strick price before the option expires, can I sell the option (with 45 days left) on to get rid of my risk. I guess not as I would get getting paid twice to sell the same option? So I guess I could buy a put on X to hedge my position to a degree (depending on the strike pruce and duration). Or do a virtical spread (sell/buy) at the outset, to hedge but make less potential profit at the end Can someone please clear this up for me as I am learning before thinking about trading Thanks very much CXMelga
-
Has anyone seen weird option pricing like these? Take a look at the Jan '13 puts (right side) at the $36.39, 37.39 and 40.39 level. Has anyone seen this weirdness before and/or know of the reason why? Notice the IV of the Jan '13 options is real high (40.41%) probably as a result of this? This is what it looked like earlier today and it still looks similar to that after the close.
