who sells those dime puts?

[ghettotrade]

I bots me those dime puts for insurance from goldman sacks but why would anyone sell puts for a dime especially april puts?

risk all that money to make 10 dollars?

sounds stupid.

 

[Maverick74]

How do you know they weren't long them?

 

[rdg]

They know why they're selling them. I assume you know why you're buying them. And the 2 of you even agreed on a price. How nice is that! Hurray for markets!

 

[hajimow]

Quote from ghettotrade:

I bots me those dime puts for insurance from goldman sacks but why would anyone sell puts for a dime especially april puts?

risk all that money to make 10 dollars?

sounds stupid.

Consider that trade a part of the sellers big trading strategy. If you have a big account, it makes sense to sell deep in the money PUTs to get 10% in a year. Not with a 30K account though.

 

[Chuck Krug]

*drum roll*

Maybe they were short the underlying?

*applause*

 

[stevegee58]

Market makers are always trying to stay delta neutral. Who knows what other options are in their holdings?

 

[cvds16]

+1 all the rest of the answers are were mostly rubbish here ...

 

[Rodney King]

Quote from ghettotrade:

but why would anyone sell puts for a dime especially april puts?

Uhhh, people who bought them earlier, and want to salvage a few dollars from their position?

 

[nltro]

Quote from ghettotrade:

I bots me those dime puts for insurance from goldman sacks but why would anyone sell puts for a dime especially april puts?

risk all that money to make 10 dollars?

sounds stupid.

Billy Hunt. AKA Billy Blow.

 

[Chuck Krug]

eh?
if you're short the underlying you can sell puts risk free.
do you disagree?

Quote from cvds16:

+1 all the rest of the answers are were mostly rubbish here ...