- Jul 8, 2000
- Reaction score
There is a lot I don’t understand. Another big date is July 16. With 30 million puts on GME down at 0.25 to 50 cents. I don’t know what that means.
I think those were just speculation purchases from months ago. Lottery plays. They cost $.01 each, so $1.00 per contract, and I am guessing the odds of hitting on that are not much different than winning the lottery, so months ago, they were probably worth the roll of the dice. Worst case scenario, the stock tanks but nowhere near those amounts, but you're able to sell them for $.02 a share, so $2.00 each, for a short time and get 100% return.
It looks silly today obviously.
Once again though, there is incredibly high open interest there with little volume, so that tells me that it is actually banks and institutions that decided that the risk was worth the relatively small gamble at one point, and obviously, they're now stuck with the clearly bad contracts.