HTZ options
- Thread starter TimMykes
- Start date
Lot of trapped and/or insane Reddit gambler doofuses?
Stock symbol changed today, option symbol changes Monday. Todays puts were offered way under parity and options appear to only be trading on the AMEX. I tried to buy them, but since the stock is delisted and only trading OTC, apparently the options are closing only for customers. Looks like a nice opportunity for the MM's.
Yes, it would have made more sense for the owners of the puts to buy the stock and exercise the puts instead of selling them under parity. I'm guessing there were problems relating the the delisting and symbol change. Some brokers will not allow trading of OTC stocks, which it became today. From reading reddit, it looks like some brokers were blocking trading in the stock as it was OTC and also blocking trading in the options, even to close, early on. Add to all that there were very few participants who could open orders to take advantage of the mispricing, e.g. MM's on the AMEX.
Not sure the point of your post.
Here reddit was a good source of information. People were reporting that the were blocked from buying the stock as it was OTC, depending on their broker. This helps to answer the previous posters question why someone wouldn't simply exercise to get out of their position.
Add to that that the fact the options were only being traded on one exchange and opening customer orders couldn't be made, I'd say these were some plausible reasons.