看样子这大MM都有内线消息

maserati

CHICAGO, April 7 (Reuters) - The Financial Select Sector SPDR exchange-traded fund XLF.P appears to have attracted a huge bullish stock and option combination trade during the last few minutes of Tuesday's session, according to one trader.

The trade involved the purchase of 100,000 May $8 XLF puts and the purchase of XLF stock at almost the same time, in what professional traders call a synthetic call option, said Jon Najarian, a founder of Web information site optionMonster.com.

In the last few minutes of trade, two huge blocks of May $8 XLF put options of 50,000 contracts were each bought for a premium of 43 cents a contract on the Chicago Board Options Exchange as the ETF shares fell, he said.

The XLF dropped 3.18 percent to $9.13.

The put trade represented 10 million shares of stock. The exact number of shares bought in the ETF was not available.

The fund's shares would have to rise to $9.58 by May expiration in order to break even on the trade.

The strategy enables the investor to take a substantial bullish position in the XLF and could be same as buying a May $8 XLF call option, which gives the right to buy the fund's shares at $8 apiece.

"This trader is expecting a resumption of the recent rally in the financial sector," Najarian said.

An equity call option conveys the right to buy the company's shares at a fixed price within a specified time period while a put option gives the right to sell the security's shares at a given price and time.

xiaoxiaozhang

maple888

xiaofengling

same as china

Cruiser

我在这笔交易的一分钟后就报告了option部分，可惜没有仔细研究其深意啊……

http://www.hutong9.com/viewthread.php?tid=43790
16:01有100,000个XLF 5月$8的put成交

raise3

OTC

exactly。。hoho买这么多put hedge,估计也是有点怕。。。
11million成交在9.13，现在是10.63，paper gain是16.5m。用来hedge的put花了4.3m，啧啧，大手笔啊。

OTC

7# OTC


这难道不会被sec盯上？。。。

frankyV

If they knew the news, why bother to buy puts???

lite1067

synthetic call = protected puts + short cash (or treasury)

coexist

What Does Synthetic Call Mean?
An investment strategy that mimics the payoff of a call option. A synthetic call is created by purchasing the underlying asset, selling a bond and purchasing a put option. The strike price on the put option is equal to the face value of the bond, which serves as the exercise price of the synthetic call.

A synthetic call produces the same overall payoff as a call option. The synthetic call will finish in the money when the price of the underlying asset is greater than the face value of the sold bond at the time of expiration.  It will be out-of-the-money when the value of the bond is greater than that of the underlying asset. When the synthetic call is in the money, the profit is the difference between the price of the underlying asset and the face value of the bond.  If the call finishes out of the money, the put option absorbs the loss from the underlying asset, with the exercise price of the put paying for the bond.

多吉

somebody mentioned that 100,000 May $8 XLF puts at 胡同，but a stream of typical 小散 answered it like this：有啥奇怪的？有买的，就有卖的。。。bla bla bla

But I went straight back to my 小黑屋春天群组 and yelling "buy and hold Banks without setting stops". Hehehe, pretty wild thing...

lwjnbtx

But I went straight back to my 小黑屋春天群 ...
多吉 发表于 2009-4-10 07:03 [/quote]

This is good call! Maybe these ppl who bought it were from WFC. Strange thing is, for them to buy such a quantity, there must be someone that's willing to sell such a big amount (market can go down as well) and take some risks, so the seller of the puts knows equally well.

fargo

12# 多吉


多老大当时是如何看出来的？不会觉得买了put的是看跌吗？

X!nG

12# 多吉


多老大当时是如何看出来的？不会觉得买了put的是看跌吗？
fargo 发表于 2009-4-10 11:55

MM通过之前建仓的金融股获利，通过这些xlf的put做对冲。

maimait

Duo Laoda, ain't you in the ranch chatting with billionaires?

somebody mentioned that 100,000 May $8 XLF puts at 胡同，but a stream of typical 小散 answered it like this：有啥奇怪的？有买的，就有卖的。。。bla bla bla

But I went straight back to my 小黑屋春天群 ...
多吉 发表于 2009-4-10 07:03

OTC

http://www.xe.com/news/2009-04-1 ... 2&currentPage=1

Someone bought C May $5 call 100k contracts Tuesday, around 0.60 per contract...familiar?