Stock will probably stay under 32.45 prior to August. Pure manipulation pre-planned
$LNCO Sees Massive Multi-Million Dollar Option Bet On Downside
On January 8, 2013 | By uranium-pinto-beans
The AUGUST $35 puts have seen a handful of trades since the IPO
The real question, which we may find an answer to in the coming months, is why did someone buy 18,741 $LNCO AUG $35 puts for $2.55 today in one giant block trade. That’s a single trade in the amount of $4,789,550! The buyer of those puts needs $LNCO to drop to $32.45 by August just to BREAK EVEN or risk a loss of almost $5 million. Speaking of break even, the bid on those puts closed at $1.90 the ask $2.40 ($.15 less than the trader paid) and a closing price of $2.00. On paper that trade is already over $1,000,000 in the RED!
This certainly is an interesting trade, but maybe its nothing. Maybe it was a fat finger, bad data, or some crazy billionaire with nothing better to do than buy millions of dollars worth of contracts in a stock that has a mostly dead option market to pique my interest. If so, my interest has been piqued, and if you are as cynical as I am you might want to watch $LNCO and $LINE in 2013. Just think for a minute if you had $4 million to spend on one option I’m sure wouldn’t be putting it into $LNCO unless you knew something. It makes you wonder………
If we see a rapid decline in either stock over the coming months you need to look no further than today’s option trade as the first clue that something was rotting.