05-16-2014, 05:51 AM
Much has been made of the large buyers of May 6 strike and 8 strike puts. In an odd twist, it appears like both longs and the put buyers will lose this week. On my bbg. terminal I show 105,842 open contracts for the May 6 strike puts. Most of these were purchased between .10-.15. With 1 day to go these are now offered @ .05 with no bid. On this trying day for longs, remember that it could have been worse. You could be staring at a 100% loss if you had bought the 6 strike puts!
8 strike puts have fared a touch better but appear to be largely unchanged from where buyers started accumulating. Then again, there is 1 day till expiry.