wgr options

Discussion in 'Options' started by scriabinop23, Jun 23, 2006.

  1. A few people hit a jackpot today. WGR 50 July calls went from 0.05 to 9.75.

    Thats $1k to $195k overnight. There were 2705 open interests, so someone did well. Just hope there weren't any uncovered writers out there.
  2. MTE


    You can't have all uncovered writers. Each contract has a buyer and a seller.
  3. I have a question....for a lot of these stocks that make these crazy jumps...do they tend to fall back the next few days afterwards?..ie, buy some long puts now on wgr?

    Probably a dumb idea...eh
  4. MTE


    Some do and some don't.
  5. I never said they were all uncovered. Some were probably covered, some not. But you -could- have all uncovered writers. Why not? the chances are low.
  6. MTE


    NO, I mean, you can't have all writers, there's an equal amount of writers and buyers - each contract has two sides!
  7. I was hoping to find some front running ahead of the announcement. There were 3 big blocks on the 45 calls traded past month, the last one was about 400 contracts I think 2 days ago on the Jly 45. Other than that nothing that would jump out at you. I will look into whether the ATM stradle bleeded up past 10 days leading up to the announcement.
  8. Of course. I was just referring to the selling side. Of course the buyers did well and the sellers hopefully owned the stock.
  9. Which reminds me, what the the SEC limitations on insiders buying options of companies they buy before announcements? :) they're not actually affecting the stock price for shareholders, just screwing over fellow option gamblers.
  10. toryj


    That's insider trading.
    #10     Jun 25, 2006