SI
SI
discoversearch

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.
Strategies & Market Trends : Options
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: edamo who wrote (4948)3/14/2000 11:40:00 AM
From: Seeker of Truth  Read Replies (1) of 8096
 
At the time when the derivatives are converted into the real thing, the put buyers are selling the stock, the put sellers are buying the stock. Similarly the call buyers are buying the stock and the call sellers must sell the stock. What's not neutral about that? Both are neutral and the ratio is neutral. What's the difference between these two cases?
Case I
100 put owners sell the stock. 100 who sold puts buy the stock.
5 call owners buy the stock. 5 who sold calls sell the stock.
Case II
5 put owners sell the stock, 5 who sold puts buy. the stock.
100 call owners buy the stock, 100 who sold calls sell the stock.
There's no difference! Assuming for simplicity that everybody had bought or sold one contract, in both cases 10,500 shares are bought and 10,500 shares are sold.
There are always as many buyers as sellers. QED
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News