Anybody can explain the huge buy-in of C 3.0 put today?

Quote from rosy2:

finance the cost of the C puts with something else. so the trade would be zero cost. or maybe volaility between the 2 were off.
More...

Pairs trading, earning the spread from the co-movement between C and BAC?
 
You can guess all you want but you have no way of knowing what the intent of the option position buyer/seller was. The puts could be bot long, sold short or they could be coupled with stock or part of a more complex option strategy.
 
Quote from rluser:

kingofshorts took 100K in "free money" as a vertical because his broker wouldn't let him sell the calls naked
More...

Good point! Which vertical play do you mean? Any context about this? I also had the same trouble, my broker doesn't allow me to sell the calls naked...
 
Quote from mizhael:

Good point! Which vertical play do you mean? Any context about this? I also had the same trouble, my broker doesn't allow me to sell the calls naked...
More...

This was actually meant to go in a different thread (about leap calls), and poke a little fun there where one could imagine some party sold a 100K lot of FOTM $5 spreads at a penny apiece from examination of the open interest.

It is insufficiently humorous to bother finding the right thread now.
 
You must log in or register to reply here.
Back
Top