it is not necessarily a “clear downside bet”
The description says the transaction signals conviction that SPCX will remain below $130. That conclusion is too strong.
A same-strike, same-expiry long put/short call combination can be used for:
1. A genuine directional short
2. Hedging a long stock holding
3. A reversal or put-call-parity arbitrage
4. Stock-borrow substitution, particularly when shares are difficult or expensive to borrow
5. Closing an earlier synthetic-long position
6. Dealer inventory management
Recent data indicated that short intere
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