Open Question
I own XTO August 70's (calls) and the stock itself is up about a dollar around
68.34...The call is down though $0.30...what does this mean? The demand is not
there for these calls despite the upward movement in price? Almost 2000 of
these calls have already traded today though...but the price is down...are there
any advanced options traders out there that can explain this activity?
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Time and implied volitility also affect the price. I'd say volility has come off
a little, lowering the price.
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The open interest is 14000, so the 2000 is not near the open interest...it is
just with the stock up over a dollar, this particular call is down 20 cents
now...could this however drive all the sellers out and if the stock goes higher,
than sellers won't be there and the price of the call will rise??
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yes, to the first part and if its down o.30 then those 2k are jumping ship, and
is that 2k off open interest. now if the price comes down it may spark some
interest to get in, depending on price of call, who is the analyst on the stock.
chris
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