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If you could find this analysis later I'd appreciate is as well, because I have OP's intuition that retail couldn't cause this
by maayank 6y ago
If you could find this analysis later I'd appreciate is as well, because I have OP's intuition that retail couldn't cause this
- quickthrowman 6y agoCall buying forces the options market maker to delta hedge by purchasing the underlying. Example: As of market close on Friday, a June 19, 2020 expiration HTZ $3 strike call option cost .55 ($55) and has a delta of .56; if I were to buy a 10 lot for $550, the options market maker would be short 560 deltas and would purchase 560 shares of HTZ to hedge their short call position. This can push the share price up quite a bit if there’s non-stop call buying. The converse is also true for put options, buying puts from an options market maker forces them to sell the underlying to delta hedge.