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CRWD OTM calls

CRWD was around 349 when the options were bought. within 2 mins of time, I have seen CRWD 365C hitting repeatedly which were expiring in 10 mins (times shown in the image are PST) and the money is not less.

Looks like they knew the CRWD was getting added to S&P and they have bought it, but they must have known the news only hits after hours and now are these 250K worth options wasted?

OR, will these options get exercised ITM by some institutions? I am curious to understand. I have seen such scenarios before and would like to know.

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Expiring options can typically be exercised after hours up to 5:30 pm ET. CRWD did go above $365 by that time.

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  • interesting, i did not know that. everywhere it says after-hours move does not account for exercising. Is this same for common man or should these kind of exercising be applicable only for certain organizations?
    – Deepak
    Commented Jun 7 at 22:53
  • and how is it legal to trade such insider information? it was bought before press-release. Would this get SEC attention?
    – Deepak
    Commented Jun 7 at 22:54
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    @Deepak - Insider trading isn't legal so, sure, if there is some evidence that people employed by S&P were buying these options, that could be prosecuted. But that would be pretty blatant-- most people trading on inside information would at least try to make it less obvious. I would wager most of these folks were not trading on inside information, they were speculating on which companies would get added to the index. S&P has criteria for what stocks to add and the universe of plausible index additions isn't huge so someone was probably making an educated guess.
    – Justin Cave
    Commented Jun 8 at 11:43

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