Post by
stockfactory on Oct 08, 2024 11:37am
high premiums on options market...
BBD is also commending a high premium on long call options...another sign it will rise even further in the coming year.
Comment by
Tempo1 on Oct 08, 2024 1:04pm
The premium on calls is drived by volatility. If the share has a high volatility the premium will be high, nothing to do with the price anticipation. Bombardier has a high premium on calls for 2 years because its share show large swings; for example, since july 15 the SP went twice at 100$ or over and twice in the 80's.
Comment by
stockfactory on Oct 08, 2024 3:08pm
True, but not just a math formula. I"m personnaly not willing to sell calls @140 exipring next September and potentially receive ~$8, which would be a nice payout.