One Investor's Bet on Today's Merger Earns 5,600% Return

Discussion in 'Options' started by OddTrader, Aug 1, 2012.

  1. One Investor's Bet on Today's Merger Earns 5,600% Return

    http://www.cnbc.com/id/48401383

    "According to several options market participants, one investor purchased 2,000 Aug $29 calls in Shaw Group for 25 cents a piece on Thursday. With Shaw shares hitting all-time high near $44 on Monday, the calls were worth about $14, a stunning 5,600 percent return for the investor."
     
  2. an 'investor' putting $50k down on .25 options, next day worth $2mil+. what did he know? also, who took the other side of that trade?
     
  3. And 12% OTM, that makes it even more suspicious.

    :)
     
  4. so is it a story if the investor lost,

    unknown investor loses 2000 x 25 = $50,000

    STOP THE PRESSES SOMEONE LOST 50K LOL!