InvestorsHub Logo
icon url

Gamco

02/20/23 10:41 AM

#430924 RE: vegas options #430923

As for me, please continue with the options discussion. EOM
icon url

jealmc79

02/20/23 10:58 AM

#430925 RE: vegas options #430923

“ 1 side becomes worthless”

I’m not asking you to quit reporting the options. I know how options work. It’s just that when they are used in this combination, if you run the numbers, it just doesn’t make a lot of sense for at least one side in this transaction.
icon url

teecee56

02/20/23 10:59 AM

#430926 RE: vegas options #430923

vegas....one thing....you cant create synthetic shares on an options trade....and not have it effect the market....by selling the deep in the money puts....that effectively buys the shares from the market.for the put seller...the calls are a minor part of the trade being deep out of the money..although the dealer is also short those calls....so the dealer taking the other side of the trade...is not going to stay short shares and calls of idcc just because somebody wanted to buy idcc stock....most likely the dealer will hedge by buying other idcc options and shares to hedge his short position in idcc.... the flow definitely finds its way to the market in one way or the other....i know how this stuff works...my son works for the aforementioned options firm as a sales trader