Quote:
Originally Posted by fishnguy
Why are us banks taking a hit today?
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Since no one answered, I will take a stab. In case anyone is interested, lol. I had some option contracts that expire in a couple of weeks. In particular, I had some calls with various strikes for Goldman.
Anyway, yesterday all banks tanked a bit, with GS more than others, dipping almost 4% at some point (recovered to -2.4% by the end of the day). I looked at the news through out the day, but couldn’t find anything that would relate. A random sell off, which sure does happen. Except the banks reported record profit just a week or two ago and solid guidance, and shares hardly touched all time high since.
So… I looked at the options chain. Here are the call options that expire today:
Here are the puts that expire today:
I will bet money that GS will close somewhere between $405 and $410 today, likely just below $407.5. That way “they” will make certain thousands of those contracts expire worthless. It’s a lot of money at play there. Funny how that works.
Having this information at hand, I dumped most of my calls near the top earlier today, only held those I am (more or less) comfortable holding. The share price went as high as $414.4 (I sold at $413.9 or something), after a solid dump with low volume to $409-ish within half an hour and currently sitting at $408.39.
Could be purely coincidental, of course. Money never lie though, right? “They” sure as hell know what “they” are doing and and how things work. It’s also not a coincidence that the dump took place at that time, after the morning volume and buy-in. None of it is a coincidence, imo. We will see if I am right in regards to the closing price. Someone should post this stuff on Reddit, lol. Though it does happen almost weekly with various tickers.
Anyway, thought someone would find it interesting. I should have bought puts after selling the calls, but I don’t have that much confidence in my market manipulation theory, lol.
Edit: while I wrote the above, it sank to $407.25.