evermore
Member
Couldn't it just as easily be the opposite? Sold calls and bought puts? Or an iron condor, or a straddle?
What makes you say the trader must've gone short calls and long puts?
I think I did say the trader sold calls and bought puts, and I think they did so in a bearish-favoring trade involving different strikes and dates. I'm not sure what the name of this strategy is, do you? I'm still learning.
The screenshot above is from Fidelity, where I recently learned that the green color means the leg was near the ask price which means it's likely that leg was bought. I assume the other leg was sold (but not near enough to the bid to be colored red). However, Thinkorswim alerted on this trade too, and did so with more confidence about which leg was bought and sold:
I'm assuming that TOS got the buy/sell right on that, but perhaps it could be wrong? I wonder if it really has access to any more information to determine that than whether the premium is nearer the bid or ask. But if we do trust it, then I think I translated the correct information to that options profit calculator link.