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I can see why it could be viewed as robbing. The person selling options assumes there is no information asymmetry. The bots that do this aren't betting, they ha
by darkxanthos 11y ago
I can see why it could be viewed as robbing. The person selling options assumes there is no information asymmetry. The bots that do this aren't betting, they have new information that shows that the current options price doesn't reflect yet.
I wouldn't say this is necessarily a bad thing myself just pointing out this is definitely not the spirit of what options are for.
- consz 11y agoBut the information is public -- anyone can read the tweet as soon as it comes out, a computer just happens to do it a lot faster and better than a human.
- giarc 11y agoExactly and since bots are allowed to buy options, the seller shouldn't assume that only humans would be buying their options.
- mlvljr 11y agoYou are not allowed to count cards in Vegas!
- darkxanthos 11y agoThat's why I'm not saying it's "wrong" but it also is no longer making a bet on randomness.