But the clear impression of the sentence is that msft somehow was betting that the stock was going down, when the opposite is true.
Clear to you, not at all to me.
If you look at the entire article, then yes, there is the impression that MSFT is betting the stock to go down, but the whole point of the article is to explain the apparent paradox. The explanation comes from the fact that they are committing to buy back stock, and can, for all practical purposes, be considered to be short their own stock, and thus, out of necessity, hoping they can buy back at a reduced price.
The selling of the puts, then, is an effort to hedge against the price of the stock going up as they try to buy back their stock.
Are we on the same page yet? |
