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Re: None

Monday, 11/18/2013 5:52:28 PM

Monday, November 18, 2013 5:52:28 PM

Post# of 724
Options Trade 2000. Anyone out there to sort out this options trade. I can think of a few explanations... not sure I'm buying the below. The screen shot is straight from time & sales TD Ameritrade... which does not make complete sense given the explanation either.

clues are screen shot and copy/paste from Yahoo

"That was a very sophisticated trade done today....
2000 December $4 Calls traded at .05
2000 December $4 Puts traded at 2.50
200,000 SHARES of stock traded at 1.725
So, what does that all mean? Is that trader Bullish, Bearish, what?
Try to analyze it:
The two option trades both equal 200,000 shares, same as the stock trade.
Breakeven on the Calls is $4.05
Breakeven on the Puts is $1.50
But, the trader is risking $500,000 on the Puts and only $10,000 on the Calls
Plus, we do not know whether he/she/them bought or sold short the shares.
What does this all mean then?
It's hard to know for sure since we can not know for sure whether the shares were bought long or shorted.
The shares could also have been long shares owned by the entity which were just closed out.
Tough to know what the trader expects. We don't really know whether he bought or sold short either part of the trade. Therefore, the bottom line is, no matter what ANYONE says here, we can not know whether this is a bullish or bearish bet.
In any case, to me, it proves that this entity does NOT know what is going to happen, by December 22 (the last day of the December options before expiration). If he/she/they did know they would only have done one side of that option trade. Everyone is still guessing.
I am guessing that it would be insanity for a company to have spent years developing a new drug/drug device, gain FDA approval, and then let it die before it even gets a chance to get going. Less
Sentiment: Strong Buy"

screen shot

Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
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