Its taken me a while to get my head around Arbratige trades that funds do, Hedged net gain trades.
For Funds to be Shorting big Volumes, They would be selling Put Warrants and Buying Call Warrants for a net credit.
Part of the reason MYR Puts are higher priced than the Calls is because MYR pays a dividend, so The Put is worth more as its factored the dip on and after exdate.
Also Momentum and sentiment can make Puts more valuable than Calls. Thus making the Sell Put/Buy Call and short to create delta Neutral for net gain -Trade.
But That Can switch sharply. As soon as Calls are worth More than Puts like say after the Report or even expecting a reasonable report.
Then as Calls become higher valued than Puts, The trade reverses. Sell Calls/Buy Puts and Buy stock to make a Delta neutral net gain Trade.
That then can swing Momentum to Over Run the other way until Puts again become Higher Priced than Calls again.
The Swings, Moentum and trend cant last forever, Value Hunters will swoop soon and flip the Sentiment and the Momentum.
IMO 1.10 before Christmas
MYR Price at posting:
72.5¢ Sentiment: Buy Disclosure: Held
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