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Thursday, November 19, 2009

Option's VEGA

Put Strike Price / Stock Price 75.70

85 - Deep in the money
80 - In the money
75 - At the money
70 - Out the money
65 - Deep out of the money

SHLD previous close price = 75.77

Both Calls and Puts Negative

Huge drop in volatility

Definition of Vega from various sites:
optionstradingbeginner Vega
theoptionsguide Vega

This shows you how you can be right in the stock price projection and wrong in options price direction. Hopefully, I got this right.

See how I have always said data are not any good unless you can mine them.
Can you see the good and the bad?