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Politics : High Tolerance Plasticity

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To: Warpfactor who wrote (14450)	6/15/2002 7:57:49 AM
From: Berk	Read Replies (3) of 23153

Warp and pvz: have either of you ever seen an explanation that addresses the following If the public is buying puts, the market maker who sells them becomes long so he will hedge by either doing the synthetic or selling enough calls to offset the delta position. By doing the synthetic the short sale will be counted (not sure if a member short or a public short in published statistics) as bearish or bullish depending upon where it lands. The reality is that it is neither since it is a neutralizing trade. Likewise the short of long calls can lead to possibly incorrect conclusions. Appreciate any information that you might have.

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