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thanks for the info lisa. lessee if I got this right. there is HUGE open interest on the March 20 puts and almost nothing on the other puts, so the put sellers want to see them expire worthless, so they push it to 20. Most of the calls are 20 and above, so the call sellers want to push it to 20 as well. What about the put and call BUYERS? can't they influence the market? Or do the buyers comprise the "little folk" - you and me that get hosed by the big boyz - the option sellers?
as for spreads and straddles, they confuse the hell out of me (unless we are talking about something other than the market ... ;-) ). If you sell the lower call, say 20, and buy the higher call, say 22.5, then where do you want it to end up? Above 22.5 and the options get exercised - the 20 gets called away, and you exercise the 22.5 to get the stock, you get to keep the premium, but have to pay 22.5 for the stock that you have to sell for 20, so unless it goes way past 22.5, it's a bad result. At 21, the 20 gets called away but you are screwed on the 22.5 - bad result. Below 20 you just keep the premium and nothing gets called or exercised. So by calling it a bear spread you hope to close below 20?
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