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Strategies & Market Trends : CFZ E-Wiggle Workspace
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To: robert b furman who wrote (40593)3/1/2025 6:43:21 PM
From: skinowski2 Recommendations

Recommended By
George Statham
toccodolce

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Hi, Robert

Remember that the Big New Thing is that large option sellers no longer defend the Max Pain strike price - but, rather, hedge from the moment they sell the put. In this sense, massive call buying will force market makers to buy the underlying (remember the Game Stop story).

And to the contrary - put buying will cause the market makers to short the underlying - in this case, the NDX.

They can do it thanks to the computers - which do it automatically, trying to follow the mathematical formulas that allow them to remain market neutral. This increases volatility and exaggerates moves - if the market will bounce from here, they’ll be buying back their short hedges like crazy. If, to the contrary, the market drops lower - they’ll be selling more.

Market makers love it - all they need to do is let the computers do all the work - while they simply stay market neutral - and wait for expiration.
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