Altaba Inc. (formerly Yahoo) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

0.0%

Nov 6 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: charlie who wrote (5146)	12/29/1997 1:47:00 PM
From: Mama Bear	of 27307

>>>If the market maker knows that the only purpose of these sales is to lock in the gain, why would he/she be holding these large number of calls?<<< Options are handled by a specialist a la NYSE, not a market maker system. The option specialist has to keep an orderly market in order to scalp the spread off of each trade. This means they have to buy or sell however many contracts they are bidding or offering. Don't worry about them losing money, they are the "house". they take a % off the top. The fellow who figured out the mathmatecal formula that they use to figure the prices won a Nobel prize for mathematics for the work, so they have the absolute best on their side. Barb!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next