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The people holding the ETF and selling the option. If they had not sold the option, they would have benefited from the value rising, now they instead got (colle
by procaryote 2y ago
The people holding the ETF and selling the option. If they had not sold the option, they would have benefited from the value rising, now they instead got (collectively) $2.5M.
If the price had stayed flat or dropped, they would of course still have the $2.5M.
The precision makes it look a lot like a crime, as trading on information that's not publicly available is illegal.
- michaelsshaw 2y agoThis option was OTM so they also (presumably) profited from selling. Just a capped profit
- koolba 2y agoNote that you don’t need to own the underlying equity to write an option contract. You only own the stock as a hedge. Owning the stock is a specific lower risk strategy called a covered call.