How do you know they exercised the puts? Everyone likes to take profits. By selling the puts they closed out their positions. I'm betting thats what happened.
By excersising i.e. staying short, they run the risk of losing their profits if the stock goes up. Also If the intent was to exercise, they would wait till options expiry. They dont have to do it today.
How did they exercise options they didn't have. There were ten times as many options traded as there open positions. Something is up. Whoever sold these options is certainly looking for the stock to rise. Also look at the 1000 500 calls sold. Really really strange.
well it takes 3 days to get the shares delivered if you exercise option so i figure the high volumes in deep puts today (if exercised) would be delivered on Friday wich they might try to dump those shares in the market friday . so that could produce alot of short covering on friday . also, the volume of the deep puts today was probly exercised you need a buyer and a seller to trade an option unless you exercise them . that explain the higher PUTS volume today "exercise"
my guess alot of those shares exercised are going to be dumped in the market friday , and there is still alot of GOOG believers that will buy them up ... just my opionons of course
and i'm talking about institutions doing the buying "the big guys"