Bloomberg

A 1,462% Bet on Tiny Health-Care Firm Shows Option Math Is Hard

A trader or group of traders bet $5 million on call options for Bright Health Group, Inc., with the options price adjusted due to a recent stock split.

A trader or group of traders purchased half a million call options on Bright Health Group, Inc. for $5 million.
The options price had to be adjusted due to a recent reverse stock split, changing the option symbol and cash in lieu amount.
The buyer(s) spent close to $5 million for the right to buy an asset if it rallies at least 1,462% to above $2.50 by the Nov. 17 expiration date.
The trader is either incredibly bullish on the company or simply mistaken, with the trade looking too good to be true.
Options trades on microcaps are unusual, and when they look too good to be true, they usually are.

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