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They often do, but they don't have to. You can write an uncovered call, if you're brave or stupid -- after all, worst case you'll just market buy the shares to
by freeone3000 6y ago
They often do, but they don't have to. You can write an uncovered call, if you're brave or stupid -- after all, worst case you'll just market buy the shares to deliver on the day the option is tendered.
- lazyasciiart 6y agoNo, worst case is nobody is selling shares on that day. Thats the exact scenario wsb is hoping to create.
- freeone3000 6y agoLiquidity providers can always just write share IOUs and find the shares to fill them later. The market running out of stock is not a thing that can actually happen.