'Banco_Central_de_Costa_Rica' pid='42913' dateline='<a href="tel:1399325 Wrote:
'js253' pid='42807' dateline='<a href="tel:1399061 Wrote:May $6 and $8 puts have seen explosive buying the last two days, with both contracts expiring on the 17th.
I don't see it as hedge, since the strike is so far below the already beaten down stock price, the "hedger" may lose money on both the stock and the put premium. two possible theories
1. Less likely
Shorts trying to raise fear , buying far OTM put is a cheap way of doing that
2. More likely
In conjunction with the weak price action this afternoon in light of a significant 13G. Another short attack coming. MW may release yet another "report" over the weekend to rattle frail longs. Tipped off put buyers can easily double/triple their money selling into the ensuing panic.
Any thoughts?
Option Monster says the seller of $6 puts was in the mkt today covering AND making a nice profit! Shorts{ put holders} are getting burned by time erosion!
Are you able to see what prices the 6 puts traded today? Also can you see change in open interest? That would be way to tell if someone was changing their positioning. Seems hard to believe any owner of that strike would sell before the extension filing deadline.