Distorted Option Pricing.

[JesseJamesFinn]

Hello Everyone!


I was watching the Post March $50 Calls, I have some of those Calls I picked up when Post crashed after hitting a All Time High. Recently I got nervous with pricing, when I bought my Post March $50, the spread was not insane, now it's become really weird.


I see Post hit $51.00 and somebody sells the Post $40 Calls for $9.80, why? The Options Market is rigged enough against investors who don't keep up on their studying of this wild Market. Why did a person sell those Calls at $9.80 when he/she had two months of Premium and one earnings call coming up in Feb 2014? The stock was $51.2 when Goober sold those contracts for $9.80?

 

[FXforex]

I see Post hit $51.00 and somebody sells the Post $40 Calls for $9.80, why? The Options Market is rigged enough against investors who don't keep up on their studying of this wild Market. Why did a person sell those Calls at $9.80 when he/she had two months of Premium and one earnings call coming up in Feb 2014? The stock was $51.2 when Goober sold those contracts for $9.80?

Look at the open interest and volume. 5 measly contracts.

 

[nazzdack]

----Post March $50 Calls....
----Post hit $51.00....
----somebody sells the Post $40 Calls for $9.80....
----why?
----two months of Premium....
----earnings call coming up....
----Goober....

1) Is the stock "htb"?......(hard to borrow)?
2) Is there an "unexpected" & "big" dividend pending?
3) Does the stock have a "small" float?

 

[JesseJamesFinn]

No Divie, no big news, just a company that was once part of Ralcorp-Purina buying up little companies so it can become what it originally was.



The Open Interest is outrageously low, I have the March $50 Calls and put them out at $4.00 when the stock was $53.30 and nobody bought them! What a joke!