Are the put options ka-put now? Did someone just lose 1B$
Actually, if I understand this correctly, the person(s) sold deep in the money call options, which would still expire in the money today, but worth less than when he/they sold them... so he/they probably made a tidy profit. What we don’t know is if these were naked calls, or if this was just insurance against a market downturn. I don’t see anything TOO unusual here myself; with recent credit situation, if I was heavily invested in the SPX I would have sold calls too. The unusual thing is that OTM calls would seem to make more sense if these were insurance.