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From my rudimentary understanding of options, shouldn't a stock which moved 50% in 30 days have a pretty high IV, and therefore have pretty expensive options an
by chillacy 10y ago
From my rudimentary understanding of options, shouldn't a stock which moved 50% in 30 days have a pretty high IV, and therefore have pretty expensive options anyways?
- FabHK 10y agoTrue, but when the option is sufficiently "out of the money", i.e. away from the strike price on the worthless side, then it can still be pretty cheap.
- deleted 10y ago[deleted]
- chillacy 10y agoThe 35 to 1 odds spot has a $1 minimum bet in Craps, but the payout is way worse than the true odds. My understanding is that OOTM options are usually similar in that they don't reflect the true odds.