LogFAQs > #957025607

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Topic	Stock Topic 32
Lopen 08/12/21 4:45:36 PM #32:	That's the gotcha yeah If you sell a call that's deep in the money, the value of letting it run out is very small as there isn't a realistic risk of it falling to that level-- it's better as the market maker to exercise and lose the value and use that to kill longer options So this supposedly "not really" difference is lost. I have a lot of doubt that you have made a lot of money doing it because it doesn't seem like something that should work very often unless the stock price IMMEDIATELY drops down. I mean maybe that has always happened in which case I'd probably consider that you being lucky rather than the strategy being particularly good, because this hole is literally always baked in there and they know the options you hold. --- No problem! This is a cute and pop genocide of love! <cite>Lopen posted [p:957025607] in Stock Topi... [t:79596938]...</cite> <quote>That's the gotcha yeah If you sell a call that's deep in the money, the value of letting it run out is very small as there isn't a realistic risk of it falling to that level-- it's better as the market maker to exercise and lose the value and use that to kill longer options So this supposedly "not really" difference is lost. I have a lot of doubt that you have made a lot of money doing it because it doesn't seem like something that should work very often unless the stock price IMMEDIATELY drops down. I mean maybe that has always happened in which case I'd probably consider that you being lucky rather than the strategy being particularly good, because this hole is literally always baked in there and they know the options you hold. --- No problem! This is a cute and pop genocide of love!</quote> ... Copied to Clipboard!
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