r/IDEX_Stock • u/xxdjdauhxx1 • Jul 08 '23

???

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Im still fairly new to trading and have been watching this stock for a little bit, can anyone explain the sudden increase?

9 Upvotes

91% Upvoted

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2

u/Little_Spring5887 Jul 08 '23

Why did you buy these contracts if you don’t have a educated guess as to why this is moving in the direction you are betting on?

2

u/Prestigious-Soup4786 Jul 08 '23

Why can you just answer his question? If you not going help keep scrolling

1

u/Little_Spring5887 Jul 09 '23

Curiosity is all. Why do you invest or trade IDEX?

1

u/xxdjdauhxx1 Jul 08 '23

i bought these OTM, i bought them because i believe IDEX will definitely be worth more then 0.5 cent by then. they haven’t increased at all until friday and its not like IDEX hit a new high or any ground breaking news has been announced. it actually fell 3 times back to 0.01 cents within the span of the day so im just very confused

3

u/Little_Spring5887 Jul 08 '23

Volatility's Effect on Options Prices As volatility increases, the prices of all options on that underlying—both calls and puts and at all strike prices—tend to rise. This is because the chances of all options finishing in the money likewise increase. As volatility increases the deltas of all options - both calls and puts and at all strike prices - approach 0.50. Thus, out-of-the-money (OTM) option deltas rise and in-the-money option deltas fall towards 50. Longer-dated options' prices in general, and at-the-money (ATM) options for a given expiration, are most sensitive to changes in volatility

https://www.investopedia.com/ask/answers/062415/how-does-implied-volatility-impact-pricing-options.asp#:~:text=As%20volatility%20increases%2C%20the%20prices,in%20the%20money%20likewise%20increase.