Insurance indeed. Called a "zero cost collar". The guy is a big holder, and wants protection against a shareprice collapse - so he buys a put (i.e. the right to sell) at 9.30 - which lets him sleep at night for two years (expires 2015). Now, to pay for this insurance, he could pay cash, or he could sell a call option - and use the sale proceeds to buy his put (hence "zero cost" ). So bingo, if the price collapses he is covered by his put; and if the price rockets his call will be called and he will surrender this block of shares, but he is going to be deep in the money anyway. The investment banks take a comm on both put and call, but it is cheap insurance for a large holder.
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