15,000 of the Sept. 14 Puts were sold for 2.30 each and 15000 of the Sept. 22 calls were bought for .70 - That is a serious position (and they will make a sheetload of money if the stock goes higher than 22 in September).
As mentioned in kaylawa's link, the put options were bought (as a put spread) and call options were sold.
Buying sept 14 puts and selling september 10 puts would yield maximum returns if the price settles just above $10 at expiration.
Sep 22 calls were sold to partially fund this put spread. While this seems like a bearish bet, the options trader could merely be buying downside protection for his existing long position.
<quote> optionMONSTER's Depth Charge monitoring program detected the purchase of 5,000 September 14 puts for $2.30. Equal-sized blocks were sold in the September 10 puts for $0.70 and the September 22 calls for $0.70. Volume was more than triple open interest at all three strikes.
The trade cost about $0.90 and will earn a maximum profit of 344 percent if the drug developer closes at or below $10 on expiration. It also renders the investor short AMRN shares if they go above $22--a level the stock has never seen.
The investor is probably using the options to hedge a long position in the equity. The trader now has downside protection to $10 and has locked in an exit at a level where he or she would probably be happy to sell. </quote>
Ameritrade confirms it. 15,180 for the 14 puts and 15K for the 22 calls for September. If they sell the puts and buy the calls they pocket a difference of about 1.60 per contract just from the sale and purchase of those options alone regardless of where the price is in September (assuming it doesn't drop below 14). That is a profit of 2.4 million dollars even if the options expire worthless (1.60 x 100 x 15k) If the stock is 23-30 they make even more money. Impressive bet.
Are you sure you don't mean 5,000 contracts? Maybe Scottrade's option quotes are delayed but I'm showing 5,000 Sep 22 calls and 5,150 Sep 14 puts. Please verify where your volume quotes are coming from.