I know ET'ers just love these stories....so here it is....especially if she is a gal...(time to put on your dating hats..) "In a very well-timed trade, a trader made over $2 million in just 28 minutes, playing what could be one of the biggest tech deals this year. The Wall Street Journal reported on Friday that Intel is in talks to buy competitor chipmaker Altera. Shares of Altera shares soared 28 percent when the report was released, valuing the company at $13.4 billion by the end of trading on Friday. For one trader, the report allowed for incredible profits in a very short amount of time. On Friday at 3:32 pm EDT, Journal M&A report Dana Mattioli tweeted:" http://www.cnbc.com/id/102545580?__source=yahoo|finance|headline|headline|story&par=yahoo&doc=102545580
...That's Every traders' dream trade: buying a bunch of call or put options...just before or at or while major news breaks out...and basically winning the lottery.
Somebody sold them. The market was 25 at 35 and it looks like 35 was paid, so trader took the screens. it was offered 1000x and I bet the algos continue to hit him not realizing there was news. Immediately after, the screens went .15 at 1.35 and then the market went dry.
$0.35 price at 34.76 with 3 weeks to go to expiry, that's cheap for a call that close to the money. I made 1000% on a SEC rumour, holding for 4 days but was at a loss when the news hit, many many years ago. I lost every other position that month so broke even sadly
It seems like you have a good grasp on the options market. Could you clarify your statement please? Like how the orders were placed (IOC or Day) and whether they were posted for awhile and how long.
The tape doesn't tell you that info. It just tells you prev bid offer and trade price. Everything else is inferred from experience. It's possible there was one slow market maker and a bunch of other more sophisticated market makers took him. When I was running our Elect market making desk (during the infancy of that industry) this would happen all the time - to us and by us.
quoting T&S deems him an expert? i didn't realize the barrier to entry of greatness was so low! (not a bash on you, newwurldmn).