Anavex Life Sciences Corp (AVXL)

[frrol]

OptionOption sellers hedge those positions to reduce idiosyncratic (ie, stock specific) and general market exposure. Call sellers will hedge by buying, put sellers by shorting. The amount of either depends on highly specified equations, and is done immediately, not at expiration date. They have to balance their books for risk management. Market makers are not involved in any of this. They will hedge their own inventory, and are doing that continuously. They too do not want market exposure. As they say in the industry: They are in the moving business, not storage.

(Btw, and so when a stock gets listed and options begin trading, the stock gets a (slight) uptick in trading volume. This is why.)