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So how exactly does the whale profit in the attack described in the article? If you're a whale, sure you can make brokers squirm by throwing your money around
by csense 6y ago
So how exactly does the whale profit in the attack described in the article?
If you're a whale, sure you can make brokers squirm by throwing your money around to buy a ton of options, forcing said brokers to bid up the underlying price hedging their short calls.
But then (as the whale), while the price is high you'd want to close some part of your position and realize gains. This means you sell the underlying at the inflated price, and then re-buy it at the lower price by exercising your call options? Is that the strategy?
- lordnacho 6y agoThere's a cool anecdote about NZD options where the dude exercised out of the money options to force the market to buy up some huge proportion of NZDs in existence. Let me see if I can think of the details.