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Technology Stocks : Intel Corporation (INTC)
INTC 37.91-1.4%Nov 11 3:59 PM EST
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To: GVTucker who wrote (79200)4/15/1999 8:30:00 AM
From: Alias Shrugged  Read Replies (2) of 186894
 
GVTucker:

>>>Thus, when someone comes in to buy a call, a market maker will sell that call to the customer and simultaneously try to also buy a put and short the stock. >>>

I think you mean buy, not short, the stock. He creates a synthetic call (for himself as a hedge) by being long puts and stock. Otherwise, I agree with your post. So, when the stock is tanking, reducing the value of outstanding calls, the market maker is dumping stock also because he doesn't need as much stock to hedge his position.
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