InvestorsHub Logo
Followers 130
Posts 8294
Boards Moderated 0
Alias Born 11/26/2001

Re: capt_jmj post# 8021

Wednesday, 11/15/2006 3:15:13 PM

Wednesday, November 15, 2006 3:15:13 PM

Post# of 31925
capt_jmj,
Your understanding about option mechanics is correct. My point was on price action, if some one is selling on bid that big block it mean seller is betting this price will not reach and he do not need to buy that stock. Sellers need to buy back the stock @ the strike price if price is lower. Buyer want insurance or he is short and want to buy stock cheaper any case could be, he might have sold 44 or 45 puts to cover his back. Many scenarios are possible.
Good luck.

Farooq

Farooq
This post is for educational and amusement purposes only, and is not to be interpreted as trading advice. Consult your financial adviser before placing any trade.

http://investorshub.advfn.com/boards/board.asp?board_id=4514

Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.