>>Waz'it mean? (Options,not porn)<<
Well someone got excited and bought 3000 calls on JAN 7 1/2 and APR 12 1/2 calls. Either they are hedging for a short position or they think the stocks gona fly. Lots of plays on the JAN 7 1/2 the last few days.
I cant quite figure it out since I dont watch option plays in real time anymore so it could be almost anything, But when you see institutions play with options, something is going on. Each option is 100 shares so 3000 calls is 300K shares each share costing like a buck.
Ofcourse then there was the story of the one who did a 20000 call option 30-40 spread play on VVUS. Who ever sold him that prob retired now.
cboe.com
CALL OPTIONS
The buyer of an equity call option has purchased the right to buy 100 shares of the underlying stock at the stated exercise price. Thus, the buyer of one XYZ June 110 call option has the right to purchase 100 shares of XYZ at $110 up until June expiration. The buyer may do so by filing an exercise notice through his broker or trading firm to the Options Clearing Corporation prior to the expiration date of the option. All calls covering XYZ are referred to as an "option class." Each individual option with a distinctive trading month and strike price is an "option series." The XYZ June 110 calls would be an individual series.
PUT OPTIONS
The buyer of a put option has purchased the right to sell the number of shares of the underlying stock at the contracted exercise price. Thus, the buyer of one ZYX June 50 put has the right to sell 100 shares of ZYX at $50 any time prior to the expiration date. In order to exercise the option and sell the underlying at the agreed upon exercise price, the buyer must file a proper exercise notice with the OCC through a broker before the date of expiration. All puts covering ZYX stock are referred to as an "option class." Each individual option with a distinctive trading month and strike price is an "option series." The ZYX June 50 puts would be an individual series.
HOW YOU CAN USE OPTIONS
If you anticipate a certain directional movement in the price of a stock, the right to buy or sell that stock at a predetermined price, for a specific duration of time can offer an attractive investment opportunity. The decision as to what type of option to buy is dependent on whether your outlook for the respective security is positive (bullish) or negative (bearish). If your outlook is positive, buying a call option creates the opportunity to share in the upside potential of a stock without having to risk more than a fraction of its market value. Conversely, if you anticipate downward movement, buying a put option will enable you to protect against downside risk without limiting profit potential. Purchasing options offer you the ability to position yourself accordingly with your market expectations in a manner such that you can both profit and protect with limited risk.
As an example, they were selling the DEC SPX 1000 calls for like $10 each in the beginning of OCT, Now they are worth close to 200. And you thought there was more money to be made in internets :>
Guess if you can make calls like those, You would be good at Ikese too.. and prob just as strange. |
