What happens when calls fail?

[hedron]

Like, let's say a stock has an unusual amount of calls. But then the calls fail, like the stock goes down and then they're all exercised. How does this affect pps? I'm assuming it's a drag and it accelerates the free fall.

Yes, I'm optiontarded. I don't trade them, it's just a stock I have has unusually high call volume.

 

[xandman]

It's a wash for shares outstanding (and thus pps). The other party is "assigned" a short position.

You know where short positions come from right? Like, when a Daddy short position and Mommy short position get lovey dovey........

 

[eusdaiki]

If the stock goes down, why will the Calls be exercised?
(that should happen when the underlying price is >= to the strike price)