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I'm pretty sure market makers have made a killing off option premiums, especially once they realized the way to kill a gamma squeeze is to jack up premiums to t
by djtango 5y ago
I'm pretty sure market makers have made a killing off option premiums, especially once they realized the way to kill a gamma squeeze is to jack up premiums to the max to kill momentum (as observed during the despac squeezes)
- dchftcs 5y agoMarket making is a business that avoids taking sides over long time horizons. In this business, they need to be hedged in some way almost all the time, so what you said makes no sense.
- FabHK 5y agoThough, yes, if uncertainty rises, market makers will quote wider spreads, which results in huge implied vols when you try to buy options (particularly not at the money).