This isn't really true. An options value is derived from a variety of inputs that have nothing to do with the price of the stock, namely, forecasted volatility and interest rates.
No real option market maker is using anything except the current price of the stock to price their options. This isn't strictly true, but what I'm saying is that people don't determine the fair value of a stock through looking at option prices.
If you want to learn more, check out black Scholes pricing model and option Greeks.
No real option market maker is using anything except the current price of the stock to price their options. This isn't strictly true, but what I'm saying is that people don't determine the fair value of a stock through looking at option prices.
If you want to learn more, check out black Scholes pricing model and option Greeks.