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2

I do not understand the option creation/destruction process, but have certainly observed OI reported much lower than daily volume, presumably an artefact of that process. This is the easy part of your complex question to explain. Other than the initial trades in a newly created option series, open interest (OI) is almost always less than daily volume unless ...


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Not every stock offers listed options. It's that simple. (By 'listed', I mean publicly traded. The company may still have employee stock options.)


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ANSWER # 2 (strategies): I can't explain the motivation of the big player in WUBA. I can only offer some general possibilities and they don't necessarily make sense in terms of the $56 buyout. The trader executed a covered call. This is a lot of money to pony up for a potential 57 cent profit (-55.78 + 1.35 + 55.00). It would make more sense if the ...


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You are short the call. It is a liability that you must satisfy and therefore the Market Value is negative. Here's an example that might be an easier way to understand it. You sell a call for $10. Assuming no commissions and fees, $1,000 is deposited into your account. Your cash balance increases by $1,000. Has you account value gone up by $1,000? No, ...


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Options are called "options contracts" because they are literally a contract. OP, regarding the specific scenario you outline ("something to do with an acquisition"), every detail of that scenario would be covered in the contract, in each case, with each company. Thus, the question is the same as asking "What happens if I have a ...


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