<I'm guessing that someone sold the puts to pay for the calls (they cost about the same, about 1 1/4 points). That would be a bullish position on essentially 100,000 shares of stock (50,000 naked put shares and 50,000 call shares).>
Couldn't this also be that he bought the puts and sold the calls,extremely bearish. Somebody had to sell those calls, so somebody is a little bearish. Then again maybe someone is bullish, bought 50,000 shares and decided to pocket close to 7%, for a month's time, on a covered call. I can't help but speculate since I saw it.
BTW, I like the upward trend of this stock and almost bought more yesterday with intentions of selling Jan 20 calls @ $3 for a 16% gain. Not bad if it worked out and not even using margin.
Rich |
