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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: anniebonny who wrote (100225)8/25/2007 5:32:32 PM
From: Kevin Podsiadlik  Read Replies (1) of 122087
 
The core fact is accurate enough: there's a current open interest on SPZIT, the September 700 calls on SPX.X, of 61,730. It's just the interpretation of that fact that's whacked out.

Put briefly, the assertions:

No one would buy that deep "in the money" calls. No reason to.

and

The entity or individual offering these sales can only make money if the market drops 30%-50% within the next four weeks.

are simply false, and so the rest of the speculation stemming from them is pointless. I can go into the math if need be but I don't want to bore.
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