If I am reading correctly, the CFO of PACW nought puts against his own bank. As I have little options experience my limited understanding is that this means he was betting against the share price. His strike price was $22.50 a share.
Can someone please help me understand what this means in layman’s terms? Is he betting the price won’t reach that and if that’s his bet how does he make $ here if it does not? He can’t sell the shares if no one wants them because they are roughly double the current SP. I’m confused. Thanks in advance for the knowledge.
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