Discussion in 'Options' started by hardrock375, May 22, 2002.
Check out the action on the Jul 20 Puts. Last order went through for 7,000 contracts. Any ideas?
Probably some sort of tax trade. i.e. the put buyer will exercise and take a long term gain on some stock up to $20.00 and a short term loss on the premium.
I'm looking at 43,000 contracts executed at $10 yesterday but my stone tool could be broken. There was no time value on this trade and there were better ways to relieve a tax situation IMO. This is a synthetic long position with a credit to the account holder (for the seller), although the aggressor seems to be the buyer here. This is a very interesting situation. Someone was on ISE bidding for another 1200 thoughout the day.
I show 52515 JNPR Jul 20 Put contracts traded yesterday. As of market open yesterday, the OI was 3233. I guess we should see an open interest change today. Somebody is taking a pretty big position. I suppose it could be for tax purposes, as pabst suggested. However, wouldn't this be a "constructive sale"? The date of the sale being the day the option was bought. Just wondering.
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