Someone just bought 1,500 Goldman Sachs Jan. 11, 2.50 puts.

Quote from Fireplace:

Someone knows something?....would be crazy if GS suffered the same fate as LEH
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At one time, it was preposterous to even think that WorldCom or Enron could go kaput. But all recessions need scapegoats and I wouldn't be too surprised if Goldie bites the dust.

(Just make sure you don't go under before they do. :) )
 
Quote from wilburbear:

Which would only be in the money if Goldman fell to under $2.50. Within 6 months.

Reminds me of a thread I started when someone bought way out of the money Lehman puts.
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It's just a credit market hedge; I wouldn't get too excited about a $4,500 trade.
 
I'm no option genius but wont the puts value increase from higher volatility if the price declines a lot? Or are they far to OTM for this to happen?

Can't it just be someone hoping to gain on a huge GS decline (maybe dropping below $100) in the cheapest way possible?
 
Quote from wilburbear:

Which would only be in the money if Goldman fell to under $2.50. Within 6 months.

Reminds me of a thread I started when someone bought way out of the money Lehman puts.
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It was a fat finger trade. The SEC should figure out what happened by 2013.
 
Omigod, the world is ending, 'cause someone spent $4.5k on some stupid puts to hedge some tail risk. Quick, someone tell the SEC/FDIC to get the bailout money ready.

Sorry for the sarcasm, but, honestly, what is the big deal?
 
Newsflash: for every buyer there's a seller... Could just as easily have titled the thread "Someone just <i>sold</i> 1,500 Goldman Sachs Jan. 11, 2.50 puts."
 
This is nothing interesting, means nothing now or even 6 months from now. $4500 is nothing, now $45 million or $450 million and maybe this would mean something.
 
Quote from S2007S:

This is nothing interesting, means nothing now or even 6 months from now. $4500 is nothing, now $45 million or $450 million and maybe this would mean something.
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Enlighten this noob but how the hell could 1,500 put option contracts with the strike price at $2.50 be only worth $4,500? It should be $375,000, no?
 
Quote from schizo:
.....be only worth $4,500? It should be $375,000, no?
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No. The buyer paid 3 ticks, 3 dollars per option, for each contract. You may be focusing on the strike price. :)
 
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