Anybody can explain the huge buy-in of C 3.0 put today?

There is a huge buy-in of C Feb. 20 PUT @3.0 today, this afternoon just before market close. A huge spike!

Anybody could explain this?

Thanks a lot!

 

What kind of explanation do you think you can get? Somebody bought a ton of 3.0 puts.

Maybe somebody is short C and sold puts against his position? Hard to say if this is a directional bet.

 

For hedging reasons, you normally look at sell options. But this is a huge buy here...

 

Maybe a new long waiting last minute to buy puts at the lowest price. Justified of course by the belief on a high close with the lowest price. synthetic call.

 

Synthetic call, that begins to make sense, given the good news coming next Monday...

So the buy-in of the put and the stock were separate.

Why would somebody do this synthetic call stuff, instead of buying an outright call?

 

maybe it was part of a pair/basket strategy that involved another bank

 

Interesting! Could you please elaborate further?

 

late reply but maybe it was buying C puts and selling BAC puts or XLF puts or something.

 

Why would anyone do that?

 

finance the cost of the C puts with something else. so the trade would be zero cost. or maybe volaility between the 2 were off.