who sells those dime puts?

Don't confuse equivalence with risk.

 

Probably a bad example since a helmet doesn't reduce your risk on a motorcycle going 30 mph either.

 

C'mon, don't exaggerate. It's only $495,000 risk on a 5 pt strike.

 

Yeah I was really trying to drive the point home and I needed that extra 5k to make the point perfectly clear.

 

Going to church doesn't make you a Christian any more than standing in a garage makes you a car.

 

This dialogue reminds me of the sort of stuff heard before 2008..back when the market was doing the slow grind higher just like now. It was unthinkable that the market could move thru strike prices 5% below or 5% above...then in 08 we saw the market moving thru those levels every other day for awhile..if not a greater range.

Clearly with all the leverage in the system and the fragility of tbtf's, volatility has to be "managed" so as not to create another contagion moment with an even greater concentration of risk spread amongst fewer participants.

 

Remember Government now has a Limit down 10% on any stock.

 

depends on the product? QQQQ's, sure i'll sell them. SPX, no thanks.

 

I'll take a stab at it: Maybe they wanted 10 bucks.