IBM Message Board - Msg: 32968999

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Technology Stocks : IBM

IBM 307.41

-0.9%

Oct 31 9:30 AM EDT

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To: ibyte who wrote (8201)	10/6/2020 8:25:51 PM
From: Lee Lichterman III	Read Replies (2) of 8218

It's difficult to tell what intentions are on options. A large put position, especially out of the money could be bullish if is someone taking a large long position and just buying cheap insurance in case of a negative surprise down the road. They could be willing to buy at 115 and are just trying to make some easy money so they are selling the puts short hoping not to get assigned but just pocket the time premium. Worst case is if assigned, they buy it 6 bucks plus the premium cheaper than it is now. I do it all the time. Could also be part of a complex spread where they have multiple strike and duration calls and this is the other side of a straddle/strangle/spread. No way of knowing unless you're the broker.

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