option traders are betting against you. Check out the heavy put activity.
These put trades are driving up the option prices due to high demand. If your long, your facing a strong head wind.
Sorry if I offended you with calling the put volume mostly rookie stuff.
My experience, has been, professional option traders don't buy or sell puts on $3 stocks .
The stock is too much priced like a typical call option anyways and the down side gain is just not enough to make it worth the trade.
So - that was my post. I didn't expect to get beat up for it.
In low priced stocks such as ARIA - the options market is a tremendously accurate "CONTRARIAN" indicator. It just a bunch of option trader "wannabes" out there thinking they are smart. Which is seldom the case.
Buying such low priced speculative option contracts just isn't what professionals do.
There is not 1 single "professional option trader" in any major firm, hedge fund, etc that cares about puts on a $3 stock - outside of hedging a long position - which you do with every substantial NEW position you put on the books.
So we must have a bunch of NEW holders of ARIA. OR a bunch of rookies that follow low priced stocks and don't have the money to go long or short the stock.
WEll say what you will about my rookie status I sold out of the moeny Jan 11 $2 puts for .80 cents back when the stock was in the low 2s. Whats the chances that the stock drops below $1.20 (the point where my trade become unprofitable). Call me a rookie but Im gonna say that selling a $2 put for 80 cents was a pretty good deal. Also It has nothing to do with not having the money to short. Why would I short a stock when it was in the low 2s. That would be the rookie move.
10500 of those $2 puts were purchased for .08 meaning that it was some other leg that was purchased along with that one or it was a market maker. Since these cant be purchased on the penny then it had to be part of some other trade.