Big money going into GE calls? 10.8million bucks.

Discussion in 'Options' started by KINGOFSHORTS, Nov 25, 2009.

  1. Not sure if this is one firm or a group but some folks thought paying .75 cents for those calls was a good bet.

    145K contracts Jan 2011 22.5 strike calls x .75 cents.

    If it was one person it would be a 10.875 million dollar bet.

    Maybe this was the mother of all Covered calls for the seller of these calls :)

    I have all kinds of options going with GE (short calls, and short puts as well)
  2. maybe some firm closed down a position they had been building. Maybe some firm sold them to open vs. something other than GE
  3. m22au


    Is that GE as in General Electric?

    Or GE as in Eurodollar futures?
  4. Funny I was thinking EuroDollar, but then saw the strike price and thought must be GE the stock...
  5. That was my thinking too.
  6. Did a real quick calculation (that I think is correct :).

    On average GE stock trades 10.8 million dollars worth every 2.5 minutes. So, big deal that someone moved 10.8 mil in call prem. To make it seem even smaller...GE trades an average, at current prices, about 1.5bil of stock again, no biggy.