Search results

This is exactly what I am worried about. Is the algorithm decides non to hedge under certain circumstances, the whole firm might find itself out of the market on a bunch of options like this. In this way, besides fees and costs of your employee, they will waste (part of) the investments made on...

Right, but you have to consider also people willing to sell to open. He is basically refusing to take any offer from them. Moreover, people in my shoes would rather exercise their calls instead of taking a bid below the intrinsic value.

Yes. We are talking about the same thing. Of course the MM can put any bid he wishes, but he is now offering an amount of money well below the option intrinsic value, which is around 1.30. He might save money by doing so, but as I said, he is also automatically putting himself out of the market...

If the MM takes care of the other stocks in the same way, he will soon get fired! Then he will have to tell ths to his wife! :D

I undestand that, but, by behaving this way, he has put himleft out of the market already for a few days. There are costs that his boss pays for the market making activity and I am not sure that he will be happy to see his employess to abstain from his role. Also, I thought that MM were making...

I bought a few days ago 10 calls 19 ACI April @ 0.80. Since then, there is no bid offer. This is the only offer lacking on the whole option chain. Is this normal? I was under the impression that the market malker was obliged to expose a quote, but I might be wrong. Regardless of this fact, what...

Tks for letting us know. Do you mind sharing a link?

I don't know the reason either, but people at CBOE used to say that in these cases you can be sure that the trade was on the bid, i.e., the option was sold. The same applies for trades going through the ask.

Tks. How comes you are so familiar with SIG, if I may ask.?

Tks.So they need to give the div back. Therefore it is probably a bearish trade making money below 28.4.

Before further speculation about this trade, we need to sort out which one is the ex div day, since this makes a big difference as rb7 pointed out.

Yes it already an ex-div trade, therefore there is no need to give back the dividend to the renter. So we go back to the fact that this is a 3 leg arbitrage. The trade is indeed a free lunch, that will yield in a week 25935 USD$ minus the charges for the transactions and the stock renting.

You are right again. Since they borrowed the stock in order to short it, they will need to hand back the dividend, making the trade outcome completely flat. Plus they will have to pay comssions for both the transactions and the stock lending. This doesn't make any sense, Then, the only way it...

Wow. You are right. The trade involved also also the buying of 570 call 33. So it is a perfect 3 leg arbitrage. They will make money regardless of the price in one week of VFC. Thanks for pointing it out.

It is reported as a combo trade, so you have to look at both legs if you want to really guess the trader intent. I have the today OI, 315, so it was fresh money. But what's the point? The OI will increase both if trader bought or sold the Put.

Since they simultaneously shorted the put, it makes sense they shorted the stock too. Otherwise the trade would have been too imbalanced on the long side, moreover with no need to to perform both legs at the same time. The way I described it, instead, perfectly captures gains from stock...

Today someone shorted 570 Puts 33 on VFC @ 4.6 and simultaneously (well, kind of, since about 30 secs passed by) shorted 57000 shares @ 28.905: "9536" 2022-12-08 10:35:05 28.905 57000 911451 28.89 28.9 Puts are expiring in 8 days and the trade is kind of bearish since it will...

Indeed it looks like there is still some play left on WayFair, but I am not sure how much I'll hold my calls before reselling them. One more question, if you don't mind. Are the PPI or CPI good predictor of future stock performance? Where do you check them?

I agree with your points, just my dataframe is rather narrow, November 18, and I am hoping to capture heavy movements in this period. Just to tell you the whole story, I was heavily short on this stock too with puts 28.5, 29.5 and 30. And I was making a lot of money until Tuesday opening, which...

Thanks, but unfortunately my wife already entered long ago! :D