The 20 day lower bollinger band is at $3.493.
Over the last year, the stock has been fairly consistent to trading within its bans, usually no more than a one day departure above or below the bands.
So place your bets appropriately tomorrow.
The Black-Scholes option pricing model is one of the most popular models to price options.
Fischer Black and Myron Scholes first published this model in 1973. Robert Merton and Scholes received the Nobel Prize in economics in 1997 for this and related work.
It values options on a number of variables, time to expiration, strike price, current stock price, risk free interest rate, etc
AS far as your comment goes, since STX at $3.50 is closer to the $2.50 Jan 10 put than the Jan $5 call, the put option should be higher in price.
Walt, while I realize this is total a waste: Let me try to educate you:
"Yet, HILARIOUSLY, about an hour ago you said the band was at $3.50."
Bollinger bands are moving averages, in this case I have been quoting a 20 day moving average bollinger band.
Do you know what a moving average is Walt?
Well moving averages change every day. Yesterday, the lower band was at $3.50, with today's sell off it fell to $3.35. It will be different tomorrow.
What I am suggesting over the next 3 months is to write covered calls, 5 to 10 weeks out, the next time STX' share price gets close to the top band.
Do you get that Walt? Or like for your new friend, do I have to dumb it down even further?
Lask week, I told people to wait until after the call to buy. The $3.50 support point would be a good entry point if we get that low tomorrow or FRiday.
I wouldn't be surpirsed to see a relief rally back up to the $5.60 level by mid-February.
Writing covered March $5 calls on this trading range is probably a solid strtegy, unless Luczo pops a deal.