Replies to post #101721 on Biotech Values

[Rocky3]

however the following scenarios stick in my mind

1. someone is selling puts - bulish outlook for the stock
2. someone is buying puts - fear of lower stock

Looking at the action - the premium is deteriorating which indicates to my untrained eye that someone is selling puts - bulish for the stock outcome.

Or someone might be both selling and buying. It looks like the big Sept 14 and 16 put transactions were sales and the Sept 10 put was a buy. One trader could have made the sales and the buy in order to limit the downside risk. Could have been a smart transaction.

I usually just sell puts, but I have regreted that in a couple transactions where there was a huge downside move. If I had bought puts at a lower price I would limited my losses.

JMO.

[HattieTheWitch]

Looking at the action - the premium is deteriorating which indicates to my untrained eye that someone is selling puts - bulish for the stock outcome.

Yes, but wouldn't the premium be deteriorating simply because the stock is up today?