Why Spend About $2,000,000 To Buy 800 $50.00 PUT Contracts That Expire In 18 Days? CG FIX THE LEAKS.
Received several emails from option specialist, They all seemed confident that no one would make this play without reliable inside information that no company news would be released before expiration that would put the puts out of the money. (Above $50.00)
They would also have to be confident that they could manipulate the price below the trade break even point of around $23.50. ANY PRICE LOWER THAT IS PROFIT.
Anyone want to speculate on how low they can manipulate it to in 16.5 days.
Does anyone think that Cris has the balls to release partnering news before Feb 16.
if you look at a distribution of 10 day returns for SRPT over the last 5 years the return required to get to above $50 has ~1% likelihood based on historical data. What makes you certain that someone was buying the contract as opposed to selling it and expecting the value to close in on the intrinsic value (along with any upward movement that would drive the price of the contract down)?
It is not just a position, on February 16 the position value goes to zero. They are rapidly loosing money as each days trading ends and the price they can sell it for declines rapidly as the 15th approaches. Major manipulation is on the way in my opinion.