3 ms·
The bet is symmetric, but not around the current price: A thinks the price will be under $90 in one year B thinks the price will be over $90 in one yea
by seoaeu 5y ago
The bet is symmetric, but not around the current price:
A thinks the price will be under $90 in one year
B thinks the price will be over $90 in one year
Of course that doesn't explain why they chose $90. If A really wasn't able to find anyone willing to bet that the price would be above $95 or $99 or whatever (despite C wanting to buy the stock for $100!), that would be a signal
- ArtTimeInvestor 5y agothat would be a signal That is the point. The statement I made which sparked our discussion was "I can imagine a structure where shorts do signal an imbalance".