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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: John Pitera who wrote (18984)4/7/2017 5:17:29 PM
From: The Ox  Respond to of 33421
 
That VIX concept makes a lot of sense!



To: John Pitera who wrote (18984)4/7/2017 9:49:49 PM
From: Elroy2 Recommendations

Recommended By
ggersh
Hawkmoon

  Read Replies (2) | Respond to of 33421
 
The Professional Institutional option sellers are simply selling the calls and shorting the ETF's so that they are delta neutral and are indifferent to if the ETF's go up or down...

Wouldn't selling the calls and shorting the ETF be a very bad thing if the ETF went up? Both positions would lose money.

You can sell the call and buy the ETF, or buy the call and sell the ETF, but if you sell both the call and the ETF, you are just short twice. I don't see how that makes you indiffernt to the ETF going up or down.

In other words, huh?