Pop Quiz!
Here’s our first installment of the tickertank.com weekly quiz! The person to correctly answer the question in the comments section of this post will receive a sweet prize!
Recently we’ve posted about earnings movements and options prices, including a nice post on how to calculate an expected move before expiration based on the prices of options on the security. Here’s the data:
XYZ November Options
Calls Strike Puts
1.75 14 0.50
1.25 15 1.40
0.60 16 1.55
Assume XYZ stock is trading at $15.10
What is the expected range for the stock’s price at expiration? We’re looking for a low end and a high end.
The first person to correctly answer in the comments is the winner!
