Bed Bath management, unable to turn things around for the past several quarters, may have caused these investors to either make a bearish bet against the shares for the upcoming earnings report or protect their holdings with the insurance of owning puts against their stock.
Those investors likely purchased these calls to synthetically replicate a long position in the underlying shares of AAPL but with less capital laid out initially, with the potential for greater leverage and less risk than owning the stock outright.
The Healthcare sector has seen a revitalization year-to-date, and these investors may have wanted to participate in a continued move higher, risking a fraction of the price of a share in the event they were 'late to the party.'
These call buyers may have expected positive, bullish news in the coming weeks, on the belief that the pipeline for GILD is broad with a multitude of opportunities to serve as catalysts.
These investors likely wanted to game the shares of ATVI, playing for upside in the stock price while limiting their downside risk, should their analysis that the company's products outperform expectations with beta trials leading into the holiday season.
These investors may have been protecting their portfolios, hedging against any further downside in the stock, or perhaps making an outright bearish bet.
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These investors may have wanted to profit on AAPL shares trading to a new all-time high, but with limited risk, going into the weekend.
The August $97 calls traded up to $3.33 Thursday morning, more than 21 times their average purchase price.
These investors may have been hedging a basket of assets with exposure to the Turkish market or making an outright bet that the Turkish economy, AND currency, would see capitulation.
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