At one time, it was preposterous to even think that WorldCom or Enron could go kaput. But all recessions need scapegoats and I wouldn't be too surprised if Goldie bites the dust. (Just make sure you don't go under before they do. )
I'm no option genius but wont the puts value increase from higher volatility if the price declines a lot? Or are they far to OTM for this to happen? Can't it just be someone hoping to gain on a huge GS decline (maybe dropping below $100) in the cheapest way possible?
Omigod, the world is ending, 'cause someone spent $4.5k on some stupid puts to hedge some tail risk. Quick, someone tell the SEC/FDIC to get the bailout money ready. Sorry for the sarcasm, but, honestly, what is the big deal?
Newsflash: for every buyer there's a seller... Could just as easily have titled the thread "Someone just <i>sold</i> 1,500 Goldman Sachs Jan. 11, 2.50 puts."
This is nothing interesting, means nothing now or even 6 months from now. $4500 is nothing, now $45 million or $450 million and maybe this would mean something.
Enlighten this noob but how the hell could 1,500 put option contracts with the strike price at $2.50 be only worth $4,500? It should be $375,000, no?
No. The buyer paid 3 ticks, 3 dollars per option, for each contract. You may be focusing on the strike price.
I heard about a guy who bought 1000 lotto tickets at 7-11 not that long ago. Wonder if he has some inside info?