Maverick, I have some questions for you. I apologize if they are very basic. Do mm's buy the stock if people are selling calls also? If mm's accumulate the stock for option rotation, can they cause the stock price to come down when they sell this stock later? Thanks. s
bought 350 put at 2.00, and sold it 3 mins later for 2.35. That was early in the morning. Gut feeling tell me that it's not moving anywhere. Nice 1% gain for my IRA account.
thecalip, "bought 350 put at 2.00, and sold it 3 mins later for 2.35. That was early in the morning. Gut feeling tell me that it's not moving anywhere. Nice 1% gain for my IRA account." Just look at the case if you bought 390 call and sold at close.
you have to hit/click on his thread first , he is paying 10$ signing bonus plus 10 cents per hit (better then GOOG)
hajimow if you had sold ITM (deep) puts and bought a couple deferred calls in the morning - you'd be sitting OK on GOOG. No?
If customers are selling calls, that means mm's are forced to sell stock against their long call purchases. Remember, the movement is created on the customer side, otherwise known as the buy side. So if customers are buying calls, they force the stock up by making mm's purchase stock. If customers are selling puts, same thing, mm's have to buy stock. If customers are buying puts, mm's have to sell stock, and if they are selling calls, they have to sell stock. MM's are not offsetting these trades later, the offset is done on the hedge or by completing a conversion or reversal.