$Trump Media & Tech(DJT.US)
Many people don't understand why both call and put options plummeted?
Let me explain it simply,
There was an uncertainty factor in yesterday's option pricing - everyone could predict this thing might succeed or fail, with implied volatility as high as 780%.
Today the implied volatility has dropped to only about 300%
Normal implied volatility should be around 200%.
What does 780% mean? Roughly the difference from strike price multiplied by 7.8,
This means all option prices halved at today's opening, even if the stock didn't move.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
