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The people holding the ETF and selling the option. If they had not sold the option, they would have benefited from the value rising, now they instead got (collectively) $2.5M.

If the price had stayed flat or dropped, they would of course still have the $2.5M.

The precision makes it look a lot like a crime, as trading on information that's not publicly available is illegal.



Note that you don’t need to own the underlying equity to write an option contract. You only own the stock as a hedge.

Owning the stock is a specific lower risk strategy called a covered call.


This option was OTM so they also (presumably) profited from selling. Just a capped profit




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