Hedge funds new strategy
A bear put spread. In the trading strategy, the investor buys one set of put contracts, which gives them the right to sell the underlying shares at a certain “strike” price by a certain time, and sells another set with a lower strike price valid for the same time frame. $BlackBerry (BB.US)$ $AMC Entertainment (AMC.US)$ $Cenntro Electric (NAKD.US)$ $Koss Corp (KOSS.US)$
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FaithQuekcoco :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
chgocal123 : Crazy my son and I were just talking about this!
102084171 : Sorry can you explain what will be the impact on the price? Thanks
YONGHANORG : you sure? buying options cost money. By doing so, even if it rise or fall, ITM range is small and must take into account the option cost? not very wise leh
Mcsnacks H Tupack OP YONGHANORG : They can’t resist the Implied Volatility being so high tho. And maybe they are pissed off and want payback
Mcsnacks H Tupack OP 102084171 : They can cause low bids. When going back and forth will cause the price to drop and can cause a selloff
JAWBONE : If this is true that would limit their losses. We can however make their puts expire worthless if the price rises above their long put!
101846557 : so how?
Mcsnacks H Tupack OP 101846557 : Selling shares at a lower price that they own plus then having puts on the share price falling lower than that price. It’s like selling the stock for 43.00 and then betting on it falling to 42.00.
101846557 : meaning we lose all our money?
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