Your right. Oops. I've made plenty of options trades, I should have caught that. That's what I get for replying in a hurry. Ok, maybe I'll buy some myself. Frank
How much does GOOG have to pull back for those .05 cent options to go up to .10? Based on my corrected calculations, this may be something to look at. Frank
lol Maybe not that many though. I'm expecting GOOG to pull back a little (which means nothing). So, I was thinking of a few. Frank
Were they purchased at 1 time in a block or was that the total volume for the day ? The sellers are probably short GOOG from much higher and just wanted to generate some basically risk free revenue and worst case is they have to be a buyer at 240 which will cover their short position for a nice profit as well. The downside is they give up any additional profit if goog falls under 240 but what are the odds of that not far out ?
At first I thought you were wrong, but when this was first posted the volume was around 27,000 and the open interest was about 21,000. Today the open interest is 14,000.
Eliot Hosewater ....... I made a typo. The short GOOG puts would have been closed at a profit, not loss. The reason to close the position is still the same though. Buy the options back for $0.05 to free up margin.