Very true. One of Najarian's points was that the put buyer has consistently been right (with it sort of implied that they were also profitable).
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Re: Is GE the next Enron? [windywave]
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Re: Is GE the next Enron? [Andrewmc]
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Andrewmc wrote:
Didn't understand that. Explain the strike price, etc Do understand that the lack of response fr both GE and institutional investors probably does not bold well for share holders
The strike price is the price at which the buyer can exercise the call or put and the price at which the seller is obligated. In other words, if I sell a $5 put to you in GE and you chose to exercise that put I'm obligated to buy GE from you at $5/share. 1 contract = 100 shares. In a stock like GE which closed at $8.79 today, for $7 puts that expire in a month you might expect total open interest to be maybe 5,000-10,000 contracts. Najarian commented that open interest in puts has routinely been an order of magnitude higher than that now for almost two years.
As a side note, I'm not commenting on Najarian's expertise on... anything. Generally my respect for an individual's opinion is inversely related to how often they're in front of a camera (in that vein, I have a lot of respect for Druckenmiller). With that said, it's pretty hard to fault Najarian's observation about unusual option volume.
Re: Is GE the next Enron? [GreenPlease]
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That shit should come with explanatory sub titles
I understand selling short, though every time I think about how it works I do have to work it though in my mind
This conversation took place at light speed for my brain to keep up.
It seems short seller's have had an issue with GE tha predates the report and JPM
I did not understand the 17 cent options........ It was over for me by then
I understand selling short, though every time I think about how it works I do have to work it though in my mind
This conversation took place at light speed for my brain to keep up.
It seems short seller's have had an issue with GE tha predates the report and JPM
I did not understand the 17 cent options........ It was over for me by then
Re: Is GE the next Enron? [GreenPlease]
[ In reply to ]
I am destined to be an index fund or real estate investor because the rest of it might as well be Cantonese
At least I can pretend to understand the former
At least I can pretend to understand the former
Re: Is GE the next Enron? [Andrewmc]
[ In reply to ]
Andrewmc wrote:
That shit should come with explanatory sub titles I understand selling short, though every time I think about how it works I do have to work it though in my mind
This conversation took place at light speed for my brain to keep up.
It seems short seller's have had an issue with GE tha predates the report and JPM
I did not understand the 17 cent options........ It was over for me by then
https://www.optionseducation.org
Andrewmc wrote:
I did not understand the 17 cent options........ It was over for me by thenHe was saying that in July someone bought the September (not sure which expiry) $9 puts for $0.17. Today those are trading around $0.80. Tidy profit.