DAY 1: 25400% Surge in a Single Day! Why Are Option Prices So Volatile?
@Tiger_Academy:
Hello, everyone!Welcome to Tiger Academy - 「Options Academy Column」 first issue.Are many friends interested in options that will doubt: Why are option returns so volatile?Today I will solve this problem for you:Taking SVB stock options as an example, on March 31, SVB stock price fell about 60%, while SVB's April 21 expired put option with an exercise price of $150, the daily rise was as high as 25,400%!Data source:Tiger trade appData source:Tiger trade app254 times a day, I believe that many people have demonstrated in their minds: if they seize this opportunity, they can achieve financial freedom with one month's salary!However, before we eagerly invest in options, we need to figure out a problem first. Why are option returns so volatile? Many people think it is because of leverage (what