One of the problems my option mentoring students have understanding is the concept of relative premium price and 'cheap' options. But, if one wants to get a good options education, it is really key to understand the concept. To help you option traders, over the last few days, we have discussed how relative to risk, premium can become oversold. This happens when premium sellers go overboard risk assets get 'cheap' in the near term. I also stated that, around 11:00 or so EST, I thought we might see a bottom in premium selling. Well I was off by about 15 minutes as one can clearly see the point where premium got oversold:
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