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So, I struggle understanding options jargon, maybe you can help -- from your tweet: is 2500 alot? 2500 of what - stock that borrowed? $135 is lower than yest

So, I struggle understanding options jargon, maybe you can help -- from your tweet: is 2500 alot? 2500 of what - stock that borrowed? $135 is lower than yesterday's price, but higher than today's open @ 125 - does that mean someone who bought the puts can cash out at $10 profit this morning? thanks.

fr0sty 9y ago
Someone bought 2500 put options. Each option gives the owner the ability to sell 100 shares at the strike price of the option. If whoever owns those options exercises them today (And covers their short position at a price of $125) they will make ~$2.5m on a ~$200k bet.
- mathattack 9y ago
  Exactly - it's the most "efficient" way to make money if you have inside information, because you only have to put a small amount of money down on the option relative to the payoff. This is why the options market is the first place regulators look on insider trading.