Watch the big dogs be a trader, 50,000 in EBAY puts followed by 50,000 in AMZN calls they are holding shares
They are going lighter with their EBAY shares, holding long just less shares, with the money that was in EBAY shares they are buying EBAY puts just in case AMZN really hurts EBAY listings as so far experts agree Amazon is doing everything right in some cases to simplify the personal auction listings. The big boys are buying Ebay puts as insurance for a big fall. (in this case 10-15 points) and AMZN calls as big boys see a move above Amazons 52 week high this week, (an 87% probability) the target was raised to 314 and Amazon has a habit of reaching targets very quickly. I saw 3 separate 50,000 US dollar sales of EBAY stock and immediatly 300 of the Jan 250 amzn calls and 170 of the Jan 285's then 25 of the 290's and 25 of the 295's immediately following the 150,000 shares of EBAY dumped. Then 200 of the 50.00 and 52.50 puts of EBAY then if that wasn't enough 265 270 275 Jan Amzn calls 150 contracts each. Listen I am long Ebay shares, I'm just smart enough to protect them with 10 times my long shares in EBAY puts and 100 times my AMZN shares in calls. A 100 or 200, wish I had 100 of the Jan 310 calls, we are talking new E350 Benz when Amazon reaches its target of 314 by Jan 19th. Not only is everyone long Amazon and fighting over shares but the 20% of Hedge Funds that are down on the year will all pile in AMZN for the ride north of 300 by Jan 15th. It can change a losing hedge funds year from being down and having redemptions to being up 5-7% on the year.