Hello, I'm curious to know thoughts. So FOMX Apr 21 10 Calls - there's someone bidding these up now for the past week and he's paying a ridiculous premium for them. I believe he/she has probably bought almost all the open interest for this. The premium is really high compared to other stocks with higher volatility so I really just can't figure out what they're trying to accomplish? When he drops his bid (occasionally) the market bid goes back to like .50c. Any thoughts on the possible scenarios?
Probably some crazy doubling down. I can't see why anyone would want to own most of the OI in one contract. A professional would be more dynamic/paranoid.
Strikes are $2.50 apart -- that would explain about 100% of it. If you needed more "hey--this is expected behavior..." there's always the turn it made from downhill into $9.13 or so, upwards to current price. When did that occur? March 9. Mr Market has also bought May and June $20s. Would make a helluva calendar. Mebbe.