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417 points mkmk | 1 comments | | HN request time: 0.225s | source
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tqi ◴[] No.37602724[source]
Who is selling these options?? Talk about picking up pennies in front of a steamroller...
replies(1): >>37603090 #
1. fourg ◴[] No.37603090[source]
The market makers which are basically big financial institutions make up the majority, but anyone could sell these if they wanted. Big money will sell options like these and then hedge the position by buying calls to stay neutral. Their goal is to profit off implied volatility which causes options to lose value over time until they eventually expire worthless.