Bear Stearns Put Option Profits

Apparently, 55,000 contracts at 30 were bought at 0.15 cents per share in the middle of the week. On Friday, March 14, 2008, Bear Sterns (BSC) dropped 26 dollars and the put price at 30 increased to around five dollars per share. The initial $825,000 investment grew to $27.5 million overnight.
Initial Investment = 825000
Intrinsic Value = -25
Premium ,% = 25.15,-100.6%
Final Option Price = 5
Final Investment Value = 27500000
Total Profit = 26675000
From Options Profit Analyzer

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Covered Call Spread

Sell a covered call at a strike price lower than the market price and buy a put at a lower strike price. If the market price drops, the covered call value can decrease, and the put price will increase. The covered call can be bought back at a lower price, and the put can be sold for a profit.

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