Believe we're headed for the 20s. Also believe we'll head back up after June 20th. That's when the shorts and put buyers will bank their millions. That's also about the time that the dividend increase will be announced. Hold on!!
Get real, there is no reason to believe that that # of options WILL be exercised.
If the option positions are closed pre exercise date they can be retired (# of options outstanding reduced). That can initiated by either the writer or buyer of the option. You really need to educate yourself on how options come into being and how they can be taken out of being.
Much of what has been written under this subject is speculation. There is NO speculation with options trading. Shares covering these options WILL be bought or sold on June 20th if they are "in the money". Consider this, 99% of commodity trading is with speculators (people or companies who never will own the commodity). On expiration day however the commodity IS going to be delivered to someone. Same with stocks. On June 20th 17,000 shares of BB&T WILL be delivered to someone at $32.50 per share IF the stock is trading below $32.50 (put options - $32.50 strike price _ June 20 expiration).
Sorry I got on a rant today. Sometimes I just cannot believe the stuff people post.
Conspiracies? Anaylsts issue negative opinions to drive the price down so they can buy lower!!!
I'm no lawyer, but I would believe that would be illegal (like they have nailed a few people for pumping and dumping penny stocks using the net).
Then options controlling the market price of the stock. The tail wagging the dog? I think not.
Why would anyone go through the trouble of exercising an option so they they can then pay a brokerage fee on an equity trade (when they can just sell the option for the same profit or more if it has time value left)? Unless they are trying to unload equities or buy equities in a controlled way that makes zero sense.
But what the hell do I know? If I believed that trash I would stay away from stocks, it would be like playing in a poker game you knew was rigged. I never made it to UNC so I never learned screwed up logic. Hehehe
Now if only smartie had half your brain, he might have been able to get in NCState.
"No magic, no conspiracy, I like the fundamentals and looked at the technicals to try and get in at the best price." That says it all
This guy Jacobs simply wants to buy BBT at a lower price so he knocks the bank. Sometines I think the shareholders know nothing about investing. They sell when they should be buying and are scared out of their shares for little or no reason.
And you know this how? You have a record of his reccomendations? He is being paid by conspirators to drive the price down?
BTW - let's say Jacobs shorted day before his comments were made public. That is unethical and could be insider trading. Remember the print workers at Fortune a few years back trading on favorable articles about to be printed on companies? They were found guilty of insider trading.
Guess I will buy twice then. Have a limit order at $31.50 and another at $29.50.
Not that I put much faith in your price calls - according to you we should have been to $40 by now. Now you have some conspiracy theory that "they" own puts and "they" will hold the price down until expiration. Whoever the hell "they" are.
Why hold "puts" to expiration if you have a nice gain? If the price gets to $31 say and the put is worth $2.00 ($1.50 intrinsic value and $.50 time) why wouldn't you just sell the put to capture the time value instead of holding. If the stock is still $31 at expiration then you get $1.50 for the option. If "they" are so smart "they" wouldn't wait to expiration IMO.
If course unlike you I would guess there are enough buyers/sellers/options players with different opinions and different motives for buying or selling to make any conspiracy hard to pull off.
I had certainly thought that B&T shares would be at $40 by now. I listen to Mr. Allison after each quarter end and his comments have been VERY positive.
If you watch CNBC sometime at 5 pm you will note that they talk about stocks with recent heavy put or call activity. They imply that these traders "know something". About three weeks ago someone noted that there are more than 17,000 #32.50 June put options in BB&T. This tells me that someone "knows something". Do I think that some stocks are sometimes manipulated? ABSOLUTELY!!! There is no reason for BB&T to be down so much today.