Today, some dude buys 150k Jan TWTR calls driving the IV from 80ish to 140+. As of this moment he is out roughly 50mm. 10k to the charity of your choice if you can get me the FULL details on this 'tardo move. Yes, I sold quite a few of them.
Its a momentum play, it was at 40 last month and we could see it go to 80-85 by next month. Still pretty stupid to put that much on it, plus twitter is a piece of crap. People get caught in the hype and never learn.
Baloney. He bought the 85,90,95 calls and nearly DOUBLED the implied vol. It may in fact go to 80 or 85 by next month but all those calls would be worthless. no 10k for you. This could be a rouge situation or some utterly retarded adviser telling his client that's a decent way to cover FIFTEEN MILLION SHARES SHORT??? Doubt it. Betting on rogue or possible stock replacement move. But if SR trade, why the short duration??? ROGUE.
You know for sure its just one guy buying these calls, or a group of morons? And what was the strike?
Was one guy/fund. That's for certain. Was the 85, 90 & 95 calls (20140118 expir) In the original post. Just to give you some perspective, the top paid in the 95s was $5.00. I sold 1k at that price on ARCAOPT(PSE). Stock was $74.10ish. Stock down $2 and they are $1.85 and they are "supposed to be" a 20 delta... lol!!!!!
Found this, so its like you said rouge or someone knows something we dont. http://www.siliconbeat.com/2013/12/26/twitter-stock-on-fire/
So let me get this right ........... You are selling TWTR calls and you call some guy who is a buyer of calls "retarded". TWTR 1-month chart
Anybody that loses 40-50mm in 1hr is retarded. Everything is relative. The $70/95 1x2 call was doable at EVEN MONEY. Now it's $3.50. He's out 40mm+, and I'm up.... well I'll keep that to myself.
Man this is getting seriously funny and most likely insanely profitable for you as a seller. If you sold even 1% of it, you are saying you just made 400k today on this trade.....and in case you sold 3% of it, you made a cool 1.2 million. Wow!! Holiday trading can be wildly profitable it seems in such isolated instances.