Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Berk who wrote (14458)	6/15/2002 8:11:16 PM
From: pvz	Read Replies (1) \| Respond to of 23153

Dick, that's an interesting question and I don't know the answer to it. If I had to guess I would say the mm's hedging transactions aren't counted in the statistics. I wonder if anyone else could explain how this works. Pvz

To: Berk who wrote (14458)	6/16/2002 12:38:59 AM
From: Raymond Duray	Read Replies (1) \| Respond to of 23153

Re: 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. Not necessarily. He may inventory the risk, and move against the mark in the close. The market maker has both time decay and deception on his side. Max pain for the public is the object of the game.