Can someone explain to me why are RIM call and put options both down today?
For the past couple of days, I noticed something extremely bizarre with RIM call and put option price movements. Today was a perfect example of this price distortion, RIM equity price went down 1.31 percent. By theory, puts should be up and calls down. However, all put options (for Feb 16) are down anywhere from 1 to 5 percent. What gives? In addition, call options (also for Feb 16) are down anywhere from 10 to 30+ pct? This magnitude of drop does not makes sense either given that the RIM underlying price only went down less than 1.5 pct.
Can someone with experience in option trading explain these odd price movements in options relative to underlying share price? Is it due to lack of volume, volatility or is this a common occurrence for RIM options?
the premiums for both calls and puts were exceptionally high ahead of earnings and immediately after due to volatility and volatility expectations.
premiums are now decreasing on a lull in scheduled news flow from RIMM.
If you view the 2 responses in this thread you will see the difference between a rimtard (someone that buys the stock and cries conspiracy when it trades the opposite way) and an intelligent trader that understands where his money is working for him.
Sammy divano is one of the above. Can you figure out which?