The link below shows the February 16 call option listing for company XYZ.
I used to think that, the higher the strike price, the cheaper the call option. Obviously, the price pattern for this company (and other companies as well) fluctuates. In particular:
- $68 is at $0.07
- $69.5 is at $0.15
- $70.5 is at $0.18
- $73 is at $0.12
- Everything in between is substantially less
- Why does this trend hold, i.e. why does a call with a higher strike cost more than a call with a lower strike?
- Why are there calls, for e.g the $69 strike, that have nobody bidding for them?