they might be betting on so many things, all possible catalysts: ITC victory, CA DS case, FDA actions, Europe deal, scripts growth, b/0 etc etc. Overall this combo trade is bullish like TTE said. And the market thought so as the vol and pps continued to ramp up afterwards.
Just look up what a conversion or reversal is in the options space, please. It’s not a bull or bear trade, they are just making an interest rates play. There’s a reason option pricing and stock price didn’t move much during the trade. Let’s stop making silly reasons. He exchanged a dollar for 4 quarters, that’s all it was. The only trade in options space where you trade equal number of calls, puts, shares, is a conversion or reversal.
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