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JLS

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Alias Born 12/14/2004

JLS

Re: optionsexpressguy post# 1985

Friday, 02/21/2014 3:26:33 PM

Friday, February 21, 2014 3:26:33 PM

Post# of 2000
optionsexpressguy,

Good time for you to show up.

I should of checked in earlier this morning.

Earlier, I saw that CLF Mar 22 Calls were selling at 0.95 while theoretical was at 1.32 (I do account for risk-free rates and annual dividend within the calculation, but they don't matter much). Was thinking of buying those Calls because of that mismatch (and CLF is reversing upward, though my indicator would not indicate a Buy because of an intraday lower low of the underlying). If I did buy the Call, it would be a new position, not a closing of my current Call sale.

What is your opinion when the actual exceeds theoretical during a situation like this?
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