I was thinking the same thing monday so after the BB10 announcement I overpaid for some $9 Call options expiring yesterday(very large Open interest). I paid .18 monday and they traded all week under .05 after the big drop tuesday. So yesterday they fell to a bid of .01 and ask .02 when RIMM was down to almost $8.50. I took the gamble at .02 to average down my call price to under .10. Sold them all at .27 in the final 20 minutes of trading. Thank you God. My first short term play of an option got lucky,
but my jan.2014 $13 calls are now well above double what I paid..(.70)
Someone bought some of those calls at .01 friday and if they were really lucky, could have sold at .29 a few hours later.
The same thing happened to me with BAC calls a few years ago. Just when i thought I lost the entire $5,000 investment, the calls were suddenly in the money in the last hour of trading and I ended up doubling my money. As much as I'd like to think my investment savvy played a part in that profit - it really was just dumb luck.
Beav, you did call it as being over $9 - but the call wasn't based on technical analysis, insight, or an insider tip on an upcoming news catalyst. You merely made a "we'll see" guess and got it right this time.
In the last hour of trading, unexpected buy volume pushed a ton of weekly & monthly $9 call options into the money. None of us retail traders had anything to do with the 15 million shares traded in the last 90 minutes of the day. Like I mentioned in a previous post, sometimes stock manipulation goes both ways. Isn't it interesting that there hasn't been any news come out that supports Friday's big volume? I could be totally off-base here, but I believe fund managers were hoping to create a false buzz to lure retail investors into buying the shares they will be likely dumping next week. You can be sure that there will be a lot of longs buying at 7:30AM on Monday so they don't "miss out on the big move" because something's going on behind the scenes.