The Most Important Lessons You Have Learned From Options

Late trading of MFs after 4pm which reflected AH movement in futures.

 

Some would trade early and then cancel if the after hours didnt go as planned.

 

So how would that work?

As an example would they buy GOOG calls before the market closes then if GOOG crashes in AH change the order to puts?

 

Yeah. Exactly. Except they did it will real money and not fake one lots.

 

Interesting .... So as tradingjournals stated in the first post there could be "free options in the real world".

 

ROFL. Post of the decade.

 

Correct, but TradingJournals is wrong in the sense that, as with cocaine smuggling, it's illegal.

 

Post of the decade? I don't think so, not even close. A good entry for "Post of the decade" goes to this posted 8 days before GOOG hit $1000.00. GOOG will not see 1000 before 2016

 

Another free option that is commonly traded are put/call rights in private transactions and partnerships.

They are free in the sense that two individuals will post the same proportion of money for equity in a private equity transaction but one will have put rights or call rights on the other.

It's done as a way to ensure liquity but keep the stock within the partnership.

So a PE shop and a strategic company buy another company, the PE shop will sell call rights to the strategic as an exit plan. The strike will be significantly higher than today's value imputing the return the PE shop wants.

 

Remember when options were trading until 4:01 while some volatile stocks were reporting at 4:00 ?
I did few of these arbs before they moved the closing time to 4:00.