Option price, Volatility and liquidity in the options market place... is all it matters.
Tuesday, March 1, 2016
Explosion in Implied Volatility since Dec 15
The avg implied volatility is now 220 vs 50 (pre Dec 2015), that is quite a jump in IV and looks like is going to stay here. As long as IV is this high we can expect anything from this market just like what we saw today an overall movement of 500 points in the SPY.