Intel Corp (INTC)

[Sarmad]

>> what does "re-option" mean?

I think it means that if a fund has sold a put that obligates it to buy INTC at $20, will now try to offset some of that loss by getting some income from selling a put that obligates it to buy INTC at $15. Since that also became a losing trade, now they will try to get some income by selling a put that obligates them to buy INTC at $13.

Of course the potential losses are piling up. So the hedge fund might run out of money, and simply panic-sell all those shares that they accumulated at $20 and $15, and call it quits.

I think that's the gist of the item that reseller mike referred to.