AFG 0.00% $2.47 australian finance group ltd

mother of all puts

  1. 3,424 Posts.
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    Michael Evans will make you and your wallet writhe in agony.

    PLENTY of money is still to be made from the stripped Allco fuselage.

    Just after 7am yesterday, one trader decided there was no time like the present to exercise the mother of all put options over the stock.

    Effectively, someone had agreed to buy Allco shares from this trader at up to $12 through an options agreement.

    And with the share price having slumped to little more than $1 on Monday and auditors raising doubts of Allco as a going concern, it was time to exercise.

    They began by calling in payment of $12 on 22,000 shares worth $256,000. A series of monster lines followed including 25,000 at $11.50, 29,000 at $11, 51,200 at $10.25.

    With the shares trading below $1 yesterday it's conceivable the smart money was buying on market and selling them to the other party of the put for up to $12.

    No doubt the coffee and croissants were going down nicely at this point.

    There followed 60,000 shares at $9.50, 45,000 at $9.25 and 35,000 at $9. In all, nearly 70 puts were exercised over nearly 690,000 shares at a lowest price of $5.25 and highest of $12.

    We lost count of the millions that were made. And lost. At least an eastern suburbs house.

    Imagine the call to the broker on the other side of the put: "Wanna buy some Allco shares? Going cheap, only 12 bucks."
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Mkt cap ! $532.4M
Open High Low Value Volume
0.0¢ 0.0¢ 0.0¢ $0 0

Buyers (Bids)

No. Vol. Price($)
1 41 $2.51

Sellers (Offers)

Price($) Vol. No.
$2.44 624 1
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Last trade - 08.28am 12/12/2019 (20 minute delay) ?
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