RE:RE:RE:Put volume On the Nasdaq, the bulk of the calls for August are in strike prices that are way OTM. These were bought during the buyout rumor period. Any short thinking there was a possibility of a buyout would want to hedge by buying some calls. Similarily, any bullish trader could buy some calls because they were cheap and the possibility of a buyout was something that made sense. Nobody had any idea of the possible buyout price though, I mean look at the range of strikes, from $25 to $50 represents 85% of August calls. It's reasonnable to think that the SP could reach $25 around and after the Q2 earnings release, but no way it gets to $50. It was about the possibility of a buyout rather than the probability of one.
Basically I'm saying that the amount of calls is misleading and not a good representation of anything. My guess is most will expire worthless on August 19, that is all those OTM from $30 and upwards.
MirrorWorldMan wrote: Just quickly looking at Aug calls I see the total call interest outnumbers the puts, maybe 2:1 for all strikes. Which is a positive sign. I see alot of red %changes in the put prices and a green in the 25 calls. Thats a good thing. I see medium reciprocal call/put interest that would signify a possible loading in a prior naked short position. Not so healthy. Bottom line is the shorts just doing what they do.