The share price of GLD (Gold trust) opened up 2%, dropped to -5%, and closed around 0%.
Over that time, I was tracking the price of OTM calls with expiry dates 6 month - 1 year out.
I noticed that the options prices were \*up\* (by around 10%) when the share price was on the rebound but was still down by 1%.
It was interesting that the share price was down while the option price was up (by a fair amount).
I’m wondering if the explanation is that the 7 point intraday swing indicated that GLD is more volatile than expected, raising the value of the OTM options.
Does that sound correct? I swear this post is not meant as a “look how astute I am”. I am really surprised to see that behavior, and want to learn more about options pricing.