I remember this guy bought 20000 shares of RENN at about $20/share last year; the price for RENN today is about $4.
The IV for AAPL is very high these days. For those who have "itchy hands", you can play selling option (call or put depending on the side you bet) and hedge with option (call or put) with different exercise prices. By doing this way, you limit the loss (in case you didn't bet it right) with unlimited potential gains. And the usage of capital is more efficient than buying put/call only.
AAPL missed ER after market today; however, IV will be down too. With this trade, even the trader guessed it right, he may not make much.But if he guessed it wrong, he'll lose big.
I used to do lots of stochastic process simulation on option pricing.....It was fun however nothing is "random" in today's stock market :>)
