Option Strategy 1.1 - PSTH - week ending 4/16
Readings after Friday Market close :
Stock price ( At execution) : $26.75
Last Friday Close : $25.36
Friday Close : $24.20
Weekly price action : ($1.16)
P/L Open : ($95)
Delta : 68.16
Implied Volatility & Time Value readings
Couple of Observations:
---Based on the delta of 68 (price dropped from $ 26.75 to $24.20 = - $2.55), loss should have been - $255 x 0.68 = $173 (based on 100 shares). But with this strategy , loss is $95 ( approx 45 % less).
-- Implied Volatility for the ITM options is keep increasing so people are positioning for a long haul and less speculative OTM options like 40, 45, 50. (Less certainly about deal timing).
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