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

Discussion in 'Options' started by mizhael, Feb 6, 2009.

  1. Pairs trading, earning the spread from the co-movement between C and BAC?
     
    #11     Mar 7, 2009
  2. spindr0

    spindr0

    You can guess all you want but you have no way of knowing what the intent of the option position buyer/seller was. The puts could be bot long, sold short or they could be coupled with stock or part of a more complex option strategy.
     
    #12     Mar 7, 2009
  3. rluser

    rluser

    kingofshorts took 100K in "free money" as a vertical because his broker wouldn't let him sell the calls naked
     
    #13     Mar 8, 2009
  4. Good point! Which vertical play do you mean? Any context about this? I also had the same trouble, my broker doesn't allow me to sell the calls naked...
     
    #14     Mar 10, 2009
  5. rluser

    rluser

    This was actually meant to go in a different thread (about leap calls), and poke a little fun there where one could imagine some party sold a 100K lot of FOTM $5 spreads at a penny apiece from examination of the open interest.

    It is insufficiently humorous to bother finding the right thread now.
     
    #15     Mar 10, 2009