Do Put Options affect share price?

ceegee · 31 August 2007

OK Probably a dumb question but...

I noticed one of the stocks on my watch list has had 18mil put options exercised this morning.

Does this affect the share price or indicate which way the person exersising the options thinks the share price is going to go?

Thanks c

dubiousinfo · 31 August 2007

ceegee said:
OK Probably a dumb question but...

I noticed one of the stocks on my watch list has had 18mil put options exercised this morning.

Does this affect the share price or indicate which way the person exersising the options thinks the share price is going to go?

Thanks c

Yesterday was the expiry date for August ETO's and have to be settled this morning.
The puts were probably just exercised because they were in the money at expiry.

Mofra · 31 August 2007

ceegee said:
which way the person ~~exersising the options thinks the share price is going to go?~~

The options would have been exercised by actioning the writer's obligation to sell the particular shares at the strike price, as such all exercised options are actioned off-market. Simple answer is no, although ETO expiry can cause some shifting amongst hedgers which can effect price.

Do Put Options affect share price?

ceegee

dubiousinfo

Mofra

Similar threads

Privacy & Transparency

Privacy & Transparency