Berkshire's $330M Bending Spoons bet preceded by deep OTM call buying

Berkshire Hathaway invested $330 million in Bending Spoons. Days before the announcement, traders accumulated out-of-the-money call options in heavy volume at asking prices.

Oct. 13: 1,465 December $55 calls (49% OTM) purchased for $314,000, with 86% bought at the ask. Open interest was zero beforehand.

Oct. 7: 1,000 October $16 $40 calls expiring in nine days bought for $231,000, with 90% at the ask.

These positions moved millions in the money following the announcement.

Site · Follow