Mar. 27 at 12:04 AM
$RITM I am a little confused on who or what is going on with the May
$10 calls. Yesterday someone was playing with hefty amount of money on that. Not sure if it is just someone with some decent money to gamble, if they bought them or sold cc's......or maybe just sold some calls naked. Here is what I am pondering. Someone dropped
$200,000+ on these calls yesterday at ask, or else they sold
$200,000+ in premium. I think we will see
$10 by expiration.....but, I also know we will see this fall .25 before expiration from the dividend. Earnings will be before expiration, and I think that will make this be
$10+. So the question is, why would someone who obviously had money and probably way smarter than me....buy these calls now, when they have a chance of getting them cheaper after April 6? So there is 2 possibilities. Either 1. They sold cc's to just scalp some premium, thinking this will drop on ex-divy...at which time they will buy back. Seems dangerous. 2. They think it keeps going up.
