Bought $20M worth of calls.
Does someone know something?
Does someone know something?
FB OCT20 135 CALL Buyer
- Thread starter Chuck Krug
- Start date
Robert Morse
Sponsor
23 points ITM. What would he know that he would pick that. Was it paired with stock or another option?
How do you know he bought? Maybe he sold?
Interesting yet, an odd price point to sell options against. It's possible they had shares, locked in profit, decided to buy $622K in Jan. 18 $185 calls as I seen it on Market Chameleon earlier. Should FB crush earnings then $190-$200 is possible, and it's unlikely it'll fall 20pts. in the next month.
I'm showing another 1500 today. $5.6 MM
That is so far in the money, there's no way this is a hedge.
I mean Robert knows better than me... but if you wanted to hedge, wouldn't you buy a closer strike? Why spend $3700/contract?
This is kinda like that NVDA purchase I posted under B&T's thread of 10,000 March '18 calls for $4500/contract.
I think you're right Chuck... somebody knows something. Thanks for the heads up.
Fairly standard stock replacement trade for a long-short fund - 20-30 % ITM. Probably trying to play the run-up into the earnings.
Really, USD 25MM doest not qualify as "serious size" for a company with 500 yard market cap.
If someone knew something, buying ATM would provide better return in case the stocks rallies. But FB has history of trading sideways 6-8 weeks after earnings and then start rallying 2-4 weeks before earnings.