Reuters, Friday:
"Shares of Bear Stearns closed down about 45.9 per cent to $30.85...
The slide in the shares prompted options market makers to add several new series of put and call options at the start of the session...
Most notable were newly added calls and puts from the $22.50 strike all the way down to the $5 strike in the front month of March, which goes off the board next Thursday...
demand for Bear Stearns options pushed up its March at-the-money implied volatility, the expected magnitude for its share price movement as conveyed by option prices. Its implied volatility was about 335 per cent at the close, after briefly topping 700 per cent on Friday morning...
Grant.
"Shares of Bear Stearns closed down about 45.9 per cent to $30.85...
The slide in the shares prompted options market makers to add several new series of put and call options at the start of the session...
Most notable were newly added calls and puts from the $22.50 strike all the way down to the $5 strike in the front month of March, which goes off the board next Thursday...
demand for Bear Stearns options pushed up its March at-the-money implied volatility, the expected magnitude for its share price movement as conveyed by option prices. Its implied volatility was about 335 per cent at the close, after briefly topping 700 per cent on Friday morning...
Grant.
