Monday, October 13, 2008

What would an MM do?

Its 4 days to option expiry, I was just thinking if I were in an MM's shoes....what would I do?

Volatility is in the extremes, I'll probably try to make volatility subside at a rapid rate to cash in those profits on the premiums I sold.

Therefore, I will try my best to make the ascend higher with smaller increments.

Who will get burned?
1. Buyers who paid a lot for OTM options.
2. Sellers who paid a lot for ITM options

We should confirm all the above if the high targets are not met today.
Refer to previous post


How to play this
1. Stay out and watch
2. Play through ETF or Stocks

So why would there be a big rally?....Just a thought

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