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Strategies & Market Trends : CFZ E-Wiggle Workspace -- Ignore unavailable to you. Want to Upgrade?

To: skinowski who wrote (38249)	1/30/2021 5:39:50 PM
From: robert b furman	Read Replies (1) \| Respond to of 41745

Hi ski, I may be way off on this, but in the last several years I've noted two things that show a different way to hedge. I sell very far out puts. Often I'm the only or at least 75% of the open interest. When my puts sell (say 10 of them, very often the volume shows simultaneously the sale of 11 -13 puts). I've often thought it was the MM hedging. More recently on KMI, the open interest has been huge calls at 14.50 and the price has been going to $15.50 at expiration delivering a lot of shares to the call owners. Then price collapses and those newbie buyers get scared and sell at a loss. It's like the market maker knows he has contol and gets supply out there and then drops the trap door. It's a ballsy way to fleece the market. Just a very recent observation over the last 90 days on not all stocks. That tidbit and $2.00 will get a small cup of coffee. <smile> Bob