1800 March 65 calls went for 1.15 - 1.25 today, should bring OI over 10,000 contracts.
Maybe not a bad bet. Either a nice deal gets done and you get a 500% return, or your lottery ticket is worthless. Hmmm.
We've seen quite a bit of that in recent months and so far they have mostly ended up worthless.
So I wouldn't say it indicates much other than people like to gamble.
There is a lot of premium in the calls, both Mar and Feb. Compare to a staid MLP like EPD, where there is very little time premium. Capturing the implied volatility through call strategies looks very enticing here. So do buy/writes.
Another 2000 65s bought at the Ask price today.
Given how the stock price is going down while the options are going up. I would guess someone is doing a stock replacement scheme. Only 1.25 to lose, vs. the stock which could lose $10-15.
Those Calls are most likely short. They are looking for a pop down after EX and covering them for a quick profit. Most likely a MM.
exactly - and the hound dogs are going to start howling....with all new monikers and ip addresses...
That's a nice theory, but it doesn't make sense with options that are that far otm. Better to do it with the 60s
In any case, the trades were made at the Ask price and not the bid.