I just got it....destriero blocked me, didn't he? That's merciful. I wouldn't read too much into this trade. It's a 40k play on a penny and the seller gave up a full 1% of the underlying on the spread. Could be some kid with the keys to a corvette. The order is interesting only in looking like an interesting order and being uninteresting. And seriously, destriero....you don't think a MM gave away $2k under parity, do you?!
Destriero take a chill pill man. The fact you first used 'WTF' and then added (edited) 'laughable' as well as an edit to cover-up that your first WTF response was a bit shy off the mark (to say the least) and now you condescending with 'foolish' are just the tell tale signs of the riled message board poster. Finally you wow me with yet another authority argument (aka authority fallacy) that 'anyone with experience' would know - experience which you have of course in spades. I get it man - you disagree with my POV, quit the use of adjectives and invective we all heard you - I have been around message boards from before the time of the WWW and can tell when someone losing an argument is riled up. There is zero need for your arrogance in lecturing me on reading and typing, believe you me there is nothing you can teach me there .You may be a great option trader but you are not so great at debating. Like I said, feel free to say I am wrong, it doesn't bother me - this was a real trivial issue - there was a question I gave an answer with a coherent reasoning and was too much of a sceptic to take authority arguments from (self-styled) bulletin board demi-gods as gospel. Now I said Peace already in my last post - so this is it, take it as a sign of my respect that I bothered to pen an answer.
It's not a POV. That's how it was structured. As paper buying. The underlying is essentially a $2 perpetual call. Why would someone buy a dollar-wide vertical instead of holding the 2C outright? Dumb, but no idea. The underlying is a $2 premium in itself. They paid a nickel under the 2C outright. Why buy the 2/3 bull spread? Dunno. Why not simply buy shares as a perpetual call? Conversely (my opinion on structuring) why not buy the 2/3 bear spread? All that we know is that paper didn't sell the 2/3 call spread. The difference between the 2/3 call spread and the 2/3 put spread is the box. You really think your answer was coherent? Any pro can look at the fill vs. the 2C and realize what transpired. You're simply out of your depth. Deal with it. You have a problem with WTF? lol stop whining.
PDLI pretty range bound 2.40 to 2.50. You wouldn't want to do a debit spread for .40 to maybe make .60 out of the $1 Spread. So it would be a credit spread to net $39360 hoping the stock drops back to $2 And runs out of time. If the stock goes to 2.50 he may have to buy them back at s loss of $10,000, risky even worse of it gets to $3. Has about 6 weeks to run.