The premium was incredibly strong pre-earnings. Got my 190 Sept's at .73 and they opened at 1.10 with nearly a $25 drop. Finally settled around .80. The juice is gone but I'm going to hold mine through August. I see a continuous stream of negativity and bad news, short term.
Okay, look at option interest on level II and tell me if you don't understand the play.
I sold the straddle myself pre-earning release and closed it before going short now. AH did scare me yesterday, but I got clarity before the market opened today. The premiums were fat and they went for it. Now, the orderly exit will take place.
The projected new sub for Q3 is a net of 190,000, which is pathetic. Even Hulu will pull bigger numbers than that.
More pressure from Hulu buyer announcement, debt ceiling chatters, revamped competition... etc. Only weak shorts can't keep this up.