I think members and hedge funds have all these complicated spreads on,, with baskets and futures and options,,,which they hold until expiry,,,many of these things must be unwound totally on expiration...
Finding any deep meaning in these things ,IMHO,,would be hard, since it is just a numbers game,,,all you need to play is cubic $,,which they seem to have,,,since the imbalances were on the buy side,,one could probably assume that , yes , they were short premium,,but I really don't know,,probably all of them have different systems, and strategies..unlike most mortals who have to pay higher margin for shorts, these guys actually get a credit equal to the dollar value of the stock they're short,,so interest rates are also a part of the eqation,,they recieve interest on the shorts and pay interest on the longs,,if they are long calls, which are a fraction of the value of the short stock,,they would be on the plus side on the interest recieved,,that is just one of their considerations , I'm sure, however when dealing in billions this difference can be substantial, and risk free..
rrman |
