Something fishy going on with GOOG?

$0.05 * $100 * 8,000... you got $400 how?

Quote from frank99:

What???

8000 options @ .05 costs $400

Am I missing something? Maybe I don't understand your point? Please clarify.

Thanks,



Frank
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Your right. Oops. I've made plenty of options trades, I should have caught that.
That's what I get for replying in a hurry.

Ok, maybe I'll buy some myself. :-)



Frank



Quote from optioncoach:

$0.05 * $100 * 8,000... you got $400 how?
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How much does GOOG have to pull back for those .05 cent options to go up to .10?

Based on my corrected calculations, this may be something to look at. :-)



Frank

Quote from ms8888:

The 8000 options @ .05 = $40,000.
Thats a nice easy profit for the seller and a helluva longshot for the buyer.
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:-) lol

Maybe not that many though. I'm expecting GOOG to pull back a little (which means nothing). So, I was thinking of a few.


Frank

Quote from optioncoach:

Cool, I am looking to sell another 8,000 contracts :)
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Quote from peilthetraveler:

Today someone bought a few GOOG 240 dec puts. When i say a few, i mean 27,000 of them. Someone told me that there was 8000 purchased of those last week too. I understand doing a little gambiling here and there, but this just seems like someone is either throwing away money, or knows something major is going to happen soon.

There seems to be alot of heavy put buying for December in fact. 300+ trades for 260, 300+ for 270, 300+ for 280, all the way up, heavier than usual put buying. But of course the big one was the 27,000 puts bought. Has anyone heard any rumors, Is goog about to take a shot to the head? Maybe some financial accounting scandel that maybe they dont really have all that cash they say they do? Insiders have sold off 4 billion worth of stock this year. Are they cashing out before the crash?
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Were they purchased at 1 time in a block or was that the total volume for the day ? The sellers are probably short GOOG from much higher and just wanted to generate some basically risk free revenue and worst case is they have to be a buyer at 240 which will cover their short position for a nice profit as well. The downside is they give up any additional profit if goog falls under 240 but what are the odds of that not far out ?
 
Quote from forex-forex:

Another scenerio is that they were short the Puts and closed at a loss to free up margin.
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At first I thought you were wrong, but when this was first posted the volume was around 27,000 and the open interest was about 21,000. Today the open interest is 14,000.
 
Eliot Hosewater ....... I made a typo. The short GOOG puts would have been closed at a profit, not loss. The reason to close the position is still the same though.

Buy the options back for $0.05 to free up margin.
 
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