RE:RE:RE:RE:Some Bullish Calls just purchased.Shorts could buy these Calls as a hedge but I have to agree with Slotty, the strikes are little bit too far out of the money. They don't need to be Calls that are in the money right now, but if I was short and wanted to Hedge I would be going with Calls that are more feasable to be ITM by Jan 2023. It would make more sense this being a hedge if the Calls were more feasible strikes for the Jan Expiry, something more like $10, $15 or maybe $20. To me that would make more sense as a hedge.
When TLRY stock does make a big move all the lower Strike prices move very fast and some buyers of Calls start looking at much higher strike prices looking for something "cheap" with the thoughts of looking for Calls that haven't lost a big multiple opportunity. This was very noteable to myself when we spiked to $9 USD a few months ago. The buyer of these Calls on Friday could easily make 3X + using these Calls simply as traders on these higher Strikes even if Tilray were to only get to $10 as long as there is enough wick on the expiry. Maybe they bought them for that purpose, just a bunch of low cost traders.
Another aspect. As Slotty mentioned these Calls could have easily been created and sold back in 2021 when everything was jacked. Whomever bought these Calls on Friday could have very well been creating contracts and dumping on the market in Feb 2021 at a whole lot higher prices than what they trade for now. If that were to be the case Fridays activity could be simply buying all those Calls back to remove the existing exposure in their account. --- Sell them high back in Feb 2021 then buy them all back now and remove all potential exposure off the books. It would also explain why they did big sweep orders. Friday was a red day for the stock but a bunch of these Striikes closed green, hence the big sweeps.
Could be any of the above reasons. The underlying shares on all of the sweep orders I mentioned on Friday represent an underlying of 1.2 Million Shares. Noteworthy.
cheers
momo
wideopenthrottl wrote: is that the type of thing a large short might do to act as a hedge?
slottygoddy wrote: What's even wilder is looking at the call options in June and seeing what strike prices have the biggest open interesting. One can only hope but i suspect we won't see those prices of $10 and $20 a share