These are illiquid options so the last trade often doesn’t correlate with share price. In addition, the bid-ask spreads are wide so it can appear that an option is making a big move when in fact it really isn’t. Furthermore, bid-ask spreads right after options open for trading tend to be much wider than during the rest of the day. This is all a big nothing burger.
voltrader85 on
How is it even possible for the $205 call to be up 5,000%. The high price on that option was 0.08 today. How can the option be 50x the prior mark? Sounds like your data source is doing some questionable math.
The $185 call being down isn’t a huge surprise since it remains way OTM despite the massive earnings move.
SDirickson on
Look at the trades. If there are no actual trades, the app will manufacture a price that’s halfway between bid and ask–either or both of which might not even be from today.
3 Comments
These are illiquid options so the last trade often doesn’t correlate with share price. In addition, the bid-ask spreads are wide so it can appear that an option is making a big move when in fact it really isn’t. Furthermore, bid-ask spreads right after options open for trading tend to be much wider than during the rest of the day. This is all a big nothing burger.
How is it even possible for the $205 call to be up 5,000%. The high price on that option was 0.08 today. How can the option be 50x the prior mark? Sounds like your data source is doing some questionable math.
The $185 call being down isn’t a huge surprise since it remains way OTM despite the massive earnings move.
Look at the trades. If there are no actual trades, the app will manufacture a price that’s halfway between bid and ask–either or both of which might not even be from today.