If you desired to buy such a massive stock position it would move the markets could you do it with o

Discussion in 'Options' started by IronFist, Mar 4, 2021.

  1. Say you wanted to buy 10,000 shares of something where doing do would cause price to rise a lot. Could you buy 100 puts instead and if they expire at a price making you get put, do you just get them hence without moving the market
     
    murray t turtle likes this.
  2. JSOP

    JSOP

    Well by the time when you get assigned, the market price would've been below the put strike so if you are to get assigned 10K shares at a price higher than the market price, if buying 10K shares of underlying straight would move the market, I would think getting assigned to buy 10K shares at a price above market price would move the market too, I would think I am not sure on this one.
     
  3. H2O

    H2O

    • You would need to sell puts, not buy them
    • It is unlikely that you would be able to sell 100 puts at an 'acceptable' price if 10k shares is a market moving quantity
    • If you were to get someone to sell you 100 puts, this person would most likely want to hedge (using the underlying) which in turn would also move the market
    • The best way to buy a market-moving amount of shares is generally through an off-exchange trade (unless you want to take risk on execution and execute over an extended period of time)
     
    Last edited: Mar 4, 2021
    Sig and caroy like this.
  4. %% COULD.
    OR simply scale in\no expiration............................................................................
     
  5. Sig

    Sig

    Note that penny stocks generally don't have options.