Jul 20, 2016 @ 18:24 ET Bid: 125.14 Ask: 125.28 Size: 4x2 Vol: 7334543 Last 125.
ID: 2742892 • Letter: J
Question
Jul 20, 2016 @ 18:24 ET Bid: 125.14 Ask: 125.28 Size: 4x2 Vol: 7334543 Last 125.14 Change -0.11 Calls Strike JNJ1622G124-E JNJ1622G125-E JNJ1622G126-E UNJ1622G127-E Last 1.42 0.52 0.21 0.06 Net 0.01 0.19 0.06 +0.01 JULY 2016 (EXPIRATION: 07122) Puts Bid .18 1.31 0.48 0.55 510 1909 0.100.14190 0.01 0.04 41 Strike JNJ1622S124-E JNJ1622S125-E JNJ1622S126-E JNJ1622S127-E Last 0.08 0.41 1.01 0.0 Net 0.11 -0.27 +0.02 0.0 JULY 2016 (EXPIRATION: 07/22) Bid 0.09 0.36 0.95 Vol Int Ask 0.14 0.42 1.06 1.83 1.98 Vol Int 149 508 984 64 338 Ask 49 1614 132 1663 128 1101Explanation / Answer
You will have to explain black-scholes model where D1 and D2 are determined which require you to do rigrous and difficult calculation's they will let you know the price change or you can use decision tree approach and then only you can explain everything. These method should explain you everything that is why there is movement and what other factors are considered and how you can use them:
Premium is although calculated on strike price on call or put option and current stock call or put option price. Movements of stock are based on sentiments of people's outlook towards the stock or other implied changes which will affect the stock movement.
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