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| Topic | Stock Topic 32 |
| Forceful_Dragon 08/12/21 4:26:38 PM #22: | Lopen posted... For in the money options, while it could cost them a small amount of profit to do so Is this because there is some kind of premium with closing a position early? Or is there no premium and they could potentially lose versus waiting and exercising the call when the price is higher? But I guess what i don't understand is that if the price goes to $40 and if the 2 week calls get exercised, couldn't plum just exercise the 2 month call and turn the whole thing into a wash? Lopen posted... The gist is if they can force you out of your bought 2 month position for less cost than you spent on the contract So it's not individual A or individual B that he has an agreement with for the 2 week and 3 month calls, but rather "market maker entity C". And it's this entity that is aware of both of your positions and sees the opportunity to force your hand? Does that means for many options trades you couldn't simply trace your transaction to another individual on the other side? --- ... Copied to Clipboard! |
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