https://twitter.com/pdauman/status/294838200923463680/photo/1
For those with access to jan call options sheet.
In addition anyone here bullish on renren which reports after close. Thanks and cheers all.
I looked up Netflix’ price back in January and there’s a huge spike during the month. It would be possible to buy an out-of-the-money call very cheaply before it went up and then after it went up, the call would be very much in-the-money and worth quite a bit. The move is so large that I wouldn’t need to look up the actual call prices to know this would have been the case. Is there any more you do not understand?
Interesting. As of the following day, the $125 strike NFLX call was still OTM, yet exponentially more valuable. It’s all change in premium, no change in intrinsic value, and presumably all from vega.
That’s flat out wrong. A 125 call that week before spike was already way in the money. No way you could have bought them for 2.00. There were intrinsically at least 35. I think the guy got his decimals off by 100. Plus the Jan calls would’ve have expired so none of this makes sense. For you to have caught the bulk of the move, you would’ve had to exercise the calls and that would be another outlay of cash.