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+--- Thread: April 90 calls? (/showthread.php?tid=3402)
April 90 calls? - Optionray - 04-18-2013
Can anyone think of some alternate reasons (someone knows something) why so many calls (2000+) are being purchased with expiration only days away? This is either the greatest clue ever to load up, or something underhanded which I haven't quite figured out yet. Anyone with some ideas? TIA
RE: April 90 calls? - CesiumFormate - 04-18-2013
Look at the put volume on the 90's as well. Pretty much the same.
RE: April 90 calls? - Optionray - 04-18-2013
'CesiumFormate' pid='20959' datel Wrote:Look at the put volume on the 90's as well. Pretty much the same.
Thanks, can't believe I missed that.
RE: April 90 calls? - johnwgrant - 04-18-2013
Based on Pricing alone, it looks like the puts were sold.... As Optionray points out, this could be someone covering their short via the options market.
I do not know the pricing of the $90 calls bought at the same time.... Anyone know ? Bought at the bid or bought at the ask ?
RE: April 90 calls? - tarulestheday - 04-18-2013
'Optionray' pid='20961' datel Wrote:'CesiumFormate' pid='20959' datel Wrote:Look at the put volume on the 90's as well. Pretty much the same.Thanks, can't believe I missed that.
It's double that position for May. Since I have a bullish bias, I would guess that this is a big short that believes the stock will trade over $90 either this week or over the next four weeks. Buying the $90 calls and selling the $90 puts in those volumes could be potentially extremely profitable and would likely offset a large number of short shares.
RE: April 90 calls? - TxPm - 04-18-2013
This is just my opinion but I'm guessing the person sold both the calls and the puts betting that the stock would trade within a range for the next several weeks. Whoever is doing this has done this MANY times in the past and has probaby made a ton of money doing so. if this is the case it could come back to bite the person in the ass should they not close out the positions before the SD as losses increase exponentially very quicly on big moves either up or down. I have my thoughts on who it is but I'll refrain from pointing fingers.
The only other strategy I could see is a synthetic long position which would be selling the puts and buying the calls. If this is the case which I doubt it is a HUGE sign. Many HF's and traders use synthetic longs via the options market in order to "cost efficiently" replicate being long the stock. This would be, in my opinion, the most cost effective way for a big short to hedge their position without covering. If that is the case hold out to your hats bc if these options do get exercises someone is going to have to come up with a lot of shares.
Once again this is all just my opinion
RE: April 90 calls? - SamAdams - 04-18-2013
Looks to me like someone is ok being long at $75 and did it in a neat way. What is the rationale for taking the other side of that unless you see no deal and stock heading lower by weeks end.
RE: April 90 calls? - petrengr1 - 04-18-2013
Why has option data disappeared for IOC on Yahoo?
RE: April 90 calls? - petrengr1 - 04-18-2013
OK, its back up. I guess they had computer glich.
RE: April 90 calls? - Optionray - 04-18-2013
'petrengr1' pid='20974' datel Wrote:Why has option data disappeared for IOC on Yahoo?
Looks like it is still there. Just in a different format. Puts follow calls.