Zeev's Turnips Patch-No Politics (ZEEV)

[hedger]

Hi Alohamart
I'm a new member and thus have only 1 post remaining.
Would you agree that if they bought and sold equal numbers of the strikes, then what I posted is correct?
If so, then you can deal with the excess 45 puts bought separately as a simple put option transaction and as you say this is a bearish transaction and the profit/loss potential is the same as any long put.
In essence you have two separate transactions ( a long put and a bull put spread ).
Also it is not clear that they bought excess puts in that the 8000 puts may have been a totally separate transaction.
I will respond tomorrow if required.