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However, for no apparent reason stock prices moved sharply downward 11 days in advance of June's expiration day.
The price of oil, which had been stuck in a trading range since it popped above $27 a barrel once in November, topped $28 a barrel yesterday after an OPEC committee recommended extending current production cuts beyond March's expiration date.
Perhaps these individuals doubt that shares will slip beneath $5 by November's expiration day.
Traders long the higher strike calls may start to amass profits by October's expiration if Coke can increase another 8% to surpass the breakeven point at $55.19.
Darden Restaurants : A pair of long strangles on the restaurant operators suggest increased volatility in DRI shares through December's expiration day.
Profits will amass if the stock surges 18% to breach the break-even price of $17.65 by December's expiration.
Thus, the investor stands to accrue maximum potential profits of 2.69 per contract if shares of DTV rally up to $32 by January's expiration day.
If this is the case, the trader purchased downside protection that will kick in if shares decline beneath the break-even point at $54.17 by November's expiration day.
However, put-buyers could also be placing outright bearish bets that EBAY's shares are set to plummet 19.8% from the current price to the breakeven point on the puts at $18.86 by March's expiration.
Traders holding the call options will bank profits if shares of PLL increase 6% over the current price to surpass the breakeven point at $35.85 by November's expiration day.
Call buyers are hoping to see shares increase at least 7% from the current price by November's expiration so they may begin to garner profits above the break-even point at $15.75.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com