So what is your point? The 40 calls are going to be more or less worthless in a month or so, especially if this thing continues to tank. Can you give me a reason why I should not believe that this junk will be in the mid-20's at time of the call expiration? Even worse for the 40's because their was a time premium most likely, and the more the stock fails to rally, the lower that time premium becomes!
Fortunately I bought a few cheap puts to complement my short position, they are currently out of the money, but at worse, I can sell them for what I bought 'em for, at least for a month or so.
My point is that anything can happen in the stock market. And that 300k is not chump change. The options market is not 100% but it is the current playground of insider trading.
While this could be a losing trade for whomever it was predictive in one sense thus far. It said that nothing was going to happen on the long side in the near term, at the time the trade was made which was near $35. That fact was why I stayed short at the time.
That these options holders are underwater now is of no consequence if, in fact, they know something.
While I have negative views on RSH and its CEO, to ignore the options activity is a risk I choose not to take.
Let's see how it shakes out in August and October...