Hey William, riddle me this. Yesterday most of my puts went up around 80 percent, but today when amazon basically regained all of yesterday's losses, the puts only lost about 10 percent in value.
Look. Here is how its going to happen. Vinik and B.S (nice initials i think) set the price target today on yahoo and AMZN at 160. I admit, Yahoo's numbers will be better than expected next week. They want to "tie" the two stocks together in investors minds, so that Amazon can follow yahoo regardless of underlying fundamentals. But everyone KNOWS that amazon's quarter sucks, and sucks hard, you cannot deny the fact that AMZN's numbers have been revised downward by roughly 100% in the last month to show sharply widening losses over the previous quarter.
So, do you think that the scamsters want to hold this stock the day after Amazon releases their numbers? Do you think they'll wait until the last second to dump their shares, or are they going to try and slowly sell off their positions to avoid crashing the stock? (number two, obviously).
The October puts are dead, and the premiums got crushed, but the November puts are still basically right where they were at the close of yesterday, except for deep in-the-money stuff.
And what better icing on the cake for vinik than to load up on puts before he starts dumping his shares? of COURSE he's going to do this, he may be a criminal but he's not stupid.
And that explains why the november premiums didn't budge today.
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