still trying to get comfortable with options. Does this mean either:
1. Someone sold 1039 ($50 put contracts) at a bid of 2.80 raking in $290,920 premium to pocket if
QCOR stays above $50
2. Someone sold 1039 ($50 put contracts) at a bid of 2.80, the stock is below $50 at expiration and
he now owns 103,900 shares at a cost of $50 - 2.80 or $47.20 per share
3. Someone bought 1039 ($50 put contracts) at the ask of 3.00 as a hedge against a long position
or a bet that QCOR will drop below $47 by expiration.
I don't know if I will ever be comfortable with options. Too confusing! Also how can you tell which of the above scenarios of 1,039 1Nov $50 Puts, L2.80 H 3.00 was the motivation for the trade?