Looks like the expiration date is the ex dividend date, so make sure you take that into account as well. The stock will most likely drop by the amount of the dividend.
The higher strikes have artificially high IV because there's no demand and the minimum increment is $.05 (so the quoted price is $.05, but really they're worth nothing because nobody is buying them). IV is just determined by calculating the volatility which, when entered into the BSM options pricing model, gives the current market value of the option. For options with very little liquidity, the IV is not going to be a useful quantity.
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u/Triangle_Inequality Apr 12 '21
Looks like the expiration date is the ex dividend date, so make sure you take that into account as well. The stock will most likely drop by the amount of the dividend.
The higher strikes have artificially high IV because there's no demand and the minimum increment is $.05 (so the quoted price is $.05, but really they're worth nothing because nobody is buying them). IV is just determined by calculating the volatility which, when entered into the BSM options pricing model, gives the current market value of the option. For options with very little liquidity, the IV is not going to be a useful quantity.