This was pointed out to me on a yahoo message board, there was very high volume on deep in the money SPY Sep Calls for the strike prices of 60,65,70,75,80,85,90, an 95.

http://finance.yahoo.com/q/os?s=SPY&m=2007-09-21

http://www.liveleak.com/view?i=b96_1188081846

MY guess is that most likely this is someone collecting the premium who wants out of their position at the same time, and will use the premium to play with in the meantime.

What are you guys' thoughts & opinions on the high volume of these DITM calls?

I quickly did a google search, and apparently there are many theories out there including:

Terrorism, a Quant Fund that went awry, a mistake (5,000 bought and then sold to correct the mistake), a glitch in the tape. a hedge fund making an attempt to scare the market, someone who just really wants to unload their SPY calls and play with the premium in the meantime, several big banks are going to crash and bring the market down with them, who knows...

I don't subscribe to the doom & gloom approach, but I also can't say I can just brush this off without trying to come up with a logical reason someone(s) would sell (or buy) that many DITM calls.

Your comments would be appreciated! Thanks in Advance!

Good Luck & Happy Trading!