Puts or calls? Also, how do you know what is the market maker position - open interest will only tell you the outright contracts, not the direction.
what you are suggesting is either.... the MM with large long volatility options positions are happy to pin prices to the strike which gives them maximum time decay with little volatility....or the MM with large short volatility options positions are happy to push prices away from their strike only to then have suddenly come back to the same strike.....and they of course get left with a long position..... why would anyone do what you are suggesting?
Ahh, my bad. I saw the word fix and thought it was vix. LOL. I stand corrected. I have a bad glare on my laptop.
Either that or you are part of the option fixing syndicate and you were trying to change the subject?
I thought the Volcker rule itself was anti-capitalist? Isn't it just red-tape? Shouldn't then exemption be pro-capitalist? Hell who knows. Logic or consistency was never a strong point amongst the pro-deregulation or anti-Obama crowd. BTW do you understand that MMs manage global risk? Unless some MMs corners the entire option chain and correlated markets (not just a single strike) he won't be able to profit.
Loving this thread. What was "it" that you were trying to do that your broker wanted to stop you from doing further? And please read up on pin risk. If someone sells a lot of options and MMs are long, there will be natural pressure to pin the strike, as the range that the underlying needs to move for the MMs to break even will be lower owing to the lower option premium they paid. Price movements on low volume are also very common. Take a look at the market volume on 4/21 -- volume in ESM4 was barely a quarter of what it usually is, and the market floated higher and higher.
Monopolies (vertical or horizontal) are not capitalistic. The governments real one purpose should be to prevent anyone else from becoming a government and stopping competition.
The events I described were very specific, not just "oh some pinning and low volume moves are common"