Movie Script: Wall Street pt: 2 (cheaters got cheated)

Discussion in 'Options' started by markg_ny, Feb 14, 2008.

  1. markg_ny

    markg_ny

    Reading for your entertainment based on some interesting ‘facts’ I noticed yesterday:

    If you make a movie based on some suspicions what happened to UNH options last few days it would be like:

    1. The New York state attorney-general sue UHN for allegedly defrauding consumers by manipulating reimbursement rates.

    2. The news leaks from ‘state attorney-general’ office – this makes the movies comedy.
    Puts volume for UHN before the news:
    Date Price Change Put vol Put Vol. for Feb expiration
    02/12/2008 48.27 0.05 13280 5928
    02/11/2008 48.22 0.02 2790 983
    02/08/2008 48.20 -0.83 2933 1151
    02/07/2008 49.03 -0.35 2583 232
    02/06/2008 49.38 -0.02 1178 764

    3. Cheaters ask around what is the best play if stocks price is down suddenly because of an event.
    They get answer: the best leverage is for OTM options.
    Cheaters load on $45 Feb puts.
    Date bid/ask volume open interest.
    02/13/2008 0.10-0.15 34361 2481
    02/12/2008 0.05-0.10 1119 1531
    02/11/2008 0.05-0.10 429 1140
    02/08/2008 0.10-0.15 745 517
    02/07/2008 0.05-0.10 0 517
    02/06/2008 0.05-0.10 0 517

    4. Audience applauds since at the end cheaters failed.

    After the credits: Stay in school since better educated buyers of 1798 March $50 puts day before the news made a nice profit..