Replies to post #225879 on Anavex Life Sciences Corp (AVXL)

[jimmy667]

There were 966 open Dec $2.5 puts that finished OTM because the stock closed below $2.50. Unlike Calls where the call sellers Stock is held in "escrow" The Put sellers cash is held in escrow in case the stock closed below the strike price on expiration where that cash is transferred out of the sellers account to pay for the stock "put" into the sellers account for the price of the strike in this case $2.50. Therefore the market makers may have needed most of those shares to then "put them to" the Put sellers. BTW it looks like 100% of the put sellers made a profitable trade even though it was below the strike because AVXLs finish was within a nickel of the strike. That makes sense does it not?