Satyam, Put Options & 99x returns in one day
Oh how I wish I owned some put options on Satyam Computers today. Look at this at-the-money (strike price = 180) January put on Satyam:
| Price Information | |
|---|---|
| Open Price | 14.00 |
| High Price | 135.00 |
| Low Price | 12.50 |
| Last Price | 131.00 |
| Prev Close | 16.65 |
| Change from prev close | 114.35 |
Almost a 10-fold return within a day! I don’t even want to look at the out-of-the-money puts.
OK, I could not resist. The January 120 put went from a low of Rs 1 to a high of Rs 99. That is a 99x return in a day. The lot size is 600, so we are talking a profit of almost Rs 60000 per lot. Oh my god!
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