Bullish on the stock.. but VERY illegal as it was done BEFORE news was released publically..
>>>This is post #694167....Talk about a correct call in advance...one of the best I've ever seen. Check the "option alert" string both sides of this post if you want to learn something....The warning/evidence was there. I also think a few people are going to need lawyers.
"Put buying is bearish, put selling is bullish. If this was a hedge, the strike would have been near the trade price of underlying stock. If someone thinks that the stock would be above $500 at expiry, they could easily sell $500 strike put for $158 a share. Upon expiry if the stock is trading at or above $500, put seller will pocket the premium.
Idea that "for every seller there is buyer" is absurd. Market makers entertain the trade if there is no corresponding bid/ask and hedge themselves by buying/selling the actual stock.
This one is clearly a short put, that means bullish on stock."<<<<<<<
No, I did not see your post. But I have always posted (for over a year) that when we got the inevitable nod from the S&P, we'd add at least 40-60 points (onto wherever GOOG was trading at before the announcement) within 1-5 days of the announcement. And that would JUST be from the announcement, not from any other influences...which would add more.
Then, after the 5th day, we'll see more gain from the buy-ins.
This is major. This is awesome.
The public float is going to get even smaller than it already is...and it IS small already, comparatively speaking for a large cap like this.
A split IS in a possibility. Per the Founders in the Analyst meeting back in March of 2005.
The trade isn't truly locked in- although because the puts are so deeply in the money it is almost a lock.
The put seller still has risk if the stock skyrockets. IMO, some counter-party is doing a favor for a large institutional customer/put buyer, and is willing to take on a little bit of risk.