Someone bought 5000 LEH 10 puts for 1.45.

You're making a huge assumption that those puts were "buy to open".

Maybe a firm was short them and "bot to close" maybe a firm shorted them to open, maybe a firm had been buying them for a while and sold em today to close? You have no way of knowing
 
Quote from poyayan:

hrm... Seems like this is a long IV and short stock play.

Half a mil... definitely risky..:)
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Seems like nothing... you can guess at whether they were opening or closing buys or sales but there is NO indication of which. besides if you wanna buy some vol and short the stock you're not going to buy far out of the money puts.
 
Quote from xflat2186:

Seems like nothing... you can guess at whether they were opening or closing buys or sales but there is NO indication of which. besides if you wanna buy some vol and short the stock you're not going to buy far out of the money puts.
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Don't know what you mean by buy some vol and short the stock.

That fact that there are 4000 open interest @ 10 and 8000 @ 20 indicate someone is betting long IV and short stock as of today.

I don't have open interest history. So, I don't know whether today interests increase or drop.
 
Quote from xflat2186:

You're making a huge assumption that those puts were "buy to open".

Maybe a firm was short them and "bot to close" maybe a firm shorted them to open, maybe a firm had been buying them for a while and sold em today to close? You have no way of knowing
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Yeah the assumption was made in the first part of my post in response to the OP's assumption. If it was buy to open it is a nice lottery ticket.
 
Quote from timscott:

Probably the same guy who bought otm puts on BSC and made millions - roll the dice again..:cool:
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haha for sure. Or anyone who had google calls when they announced earnings...some of those positions went up 9,600%. Gosh why couldn i have just put 5k on them!!
 
Quote from optioncoach:

Yeah the assumption was made in the first part of my post in response to the OP's assumption. If it was buy to open it is a nice lottery ticket.
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Coach, I was just adding to what you were saying. For what its worth I find your opinions and factual answers pretty similar to mine on most of these topics.
 
Quote from poyayan:

Don't know what you mean by buy some vol and short the stock.

That fact that there are 4000 open interest @ 10 and 8000 @ 20 indicate someone is betting long IV and short stock as of today.

I don't have open interest history. So, I don't know whether today interests increase or drop.
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Long those puts is not like being short stock, yes they're short delta but its soft delta since they're so far out of the money. If some firm was looking to get long IV they're also not really going t o be buying puts that far out of the money to pick up some long vega.


Where I do agree... its the best guess that some firm is taking a shot with them, and they're not looking for 10 in the stock but just another leg down and a greater vol explosion.
 
Quote from xflat2186:

Coach, I was just adding to what you were saying. For what its worth I find your opinions and factual answers pretty similar to mine on most of these topics.
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If that is true then be afraid... be very afraid.. LOL :D

Yeah I was just clarifying since I agree with you that we never know if it is buy to open or even sell to open assuming the vols are too high and LEH is nto going the way of BSC but the person needed a huge cushion.
 
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