Tue, May 21, 2013, 3:28 AM EDT - U.S. Markets open in 6 hrs 2 mins
Why are January $7 calls selling at $1.05?
someone thinks it will be above 8.05 in three weeks apparently......simple math plus a small premium of 25 cents as of now.....
What do you think they should be?
The way the $7 calls are currently the stock price is 7.87, the bid is 0.95 and the ask is 1.10. This looks "normally" priced for options.
If there are "abnormal" prices then that typically indicates a skew on the buying or selling side of that strike price which causes the prices to change abnormally.