We get questions at Option Pit on a wide range of topics related to options. After all, that is part of what we are here for. After the giant earnings release in AAPL last week, I thought it fitting to ponder if AAPL will payout some of that largesse they have squirreled away. Maybe before looking at what the actual markets think, let’s examine the rule for dividends.
First- Call values do not like dividends and put values do. A dividend increase will decrease call values and increase put values.
Option traders, one of the way's I judge where implied volatility is trading is to look at ATM straddles. In the SPX the straddle closed at just over 46 dollars:
For the second out of three days,, we have seen the market take a nice dive, and the VIX act as if it could not care less. What gives? Yes IV was 'up' today, but barely, an only in one
