5
votes
Accepted
Call Option Prices not reflecting undelying
The main reason is that the VIX (implied volatility of the S&P 500) declined 10% on Friday. In addition, all options have a time decay effect that reduces their value every day even with all other ...
- 30.3k
1
vote
Call Option Prices not reflecting undelying
Almost no websites and brokers compute American option prices and volatilities properly because it's quite complicated.
Most places use approximations like Roll-Geske-Whaley and Barone-Adesi and ...
- 2,987
1
vote
Call Option Prices not reflecting undelying
Options should not care about the "prospects" or "projections" of price in the future but rather about the absolute value of the underlying.
Options care about the distribution of ...
- 10.6k
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