Hi Ray, Re: Option Contracts and "Fair Value".............
On CNBC, I believe when they discuss this it means they have nothing else to fill the air time.
Unless one is a "minute trader" (versus the long term "day trader") I think it is almost completely meaningless - the equal of checking the market's horoscope. All meaning is applied retrospectively to fit the situation that materializes.
I think it might be used as a predictive model, however. I predict that people that try to use the info will probably consistently lose money.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.