4 ms·
Options are standardised contracts. You only have to find someone willing to sell, it doesn't have to be the original buyer. And, most options traders do not ac
by goodcanadian 6y ago
Options are standardised contracts. You only have to find someone willing to sell, it doesn't have to be the original buyer. And, most options traders do not actually want to exercise the options; they simply want the cash. It is much easier to sell the contract a day or two before delivery than to come up with cash to buy the shares only to turn around and sell them again.
- bluecalm 6y agoYeah, but there won't be many other options to buy at this price. The idea is the squeeze, right? You buy a lot of options. You prop up the price of the underlying asset and refuse to sell. It's not a typical situation.
- goodcanadian 6y agoAnyone can write options; it is not a fixed supply. There is (almost) always a market maker who will take the bet for the right price.