That's how I see it. The volume today for the July 10 calls/puts was ridiculously out of the norm. It seemed to be this particular combo of options for this particular month. The open interest in the July 10 puts was only 280 going into today. I think a total of 39 of those traded yesterday. So today, 4,390 of those puts traded!! And also there were 4,362 July 10 Calls that traded. There were 2,484 in the open interest for those before today, so today's volume was almost twice the open interest!! Seems very, VERY odd to me.
As for the calendar, the options expire 4 weeks from Friday. Their conference call is in a week. The tender is scheduled to take place in that time frame. Maybe that is it! Maybe it is a bet that we will be locked at $10 through the tender period. Maybe they sold both???
I am hoping we can come up with a theory on what this might mean and then act on it. I was hoping others would have more experience with this sort of thing that they could draw upon and share.
Somebody has to buy them for them to be sold. There are probably lots of potential option writers, if they get a good enough price. However, a big transaction probably requires a very interested buyer. So my guess is that is what occurred. There was probably a single purchaser and a group of sellers.
2077 of the calls were sold and 2077 of the puts were bought for July 10 strike. That was a spread. the calls were at .35 and the puts were bought for .60. That was one of the big trades. That trade came after a half hour of matching number call SELLING and Put SELLING.
With today's volume almost identical for each....4,362 vs 4,390....I thought it was someone buying both betting on a major move from $10, in one direction or the other.
Of course, they could be selling both betting on it staying right at $10. That seems less likely to me though.
But today's volume was off the charts for these options. And it seemed to be these particular options.