In layman's terms it's a bet that the dollar amount of the stock will be over or under a certain amount. For instance for $40, a put is a bet that it will be below $40 and a call is a bet that the value of the stock will be above $40 on a certain date. If you see a large run up in calls at a larger dollar amount, that bodes well for the stock going up. Before all this news broke on the mainstream about Aetna, many many puts were already being placed at $40, $30, etc for QCOR. This meant some people somewhere knew (or thought to be pc) that a large smear campaign was about to happen. For future reference if you are into daytrading this can help you spot general sentiment of what people think might happen a little bit out into the future. Hope this is helpful.
I took a look at the volume on October $36 Calls & $40 January Calls for yesterday, Thursday. I see NO signficant volume...except for the $33 & $35 Oct Calls.
*** January $30 & $42 Calls have healthy volume.
Re: "Are those someone who knew something," will never be known.
I'm here to enjoy the ride with QCOR Longs ... hopefully to have a cyber Pizza party today !! GOOOOOO HIGHER QCOR ?!?