RIO 3.43% $127.45 rio tinto limited

rembrandt .eto help please, page-5

  1. 26 Posts.
    re: rembrandt .eto help please ... arthur The Puts are currently trading at a premium compared to fair value - some 5% IV points higher - and higher than the 20 day volatility of the underlying.

    Aren't you then buying overvalued options - with the likeliyhood that the IV will fall and the option premium shrink.

    In these cases - I would have thought that selling overvalued calls - with a likely fall in IV - be the better alternative?
 
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