Re:GameStop Is Happening Again
by goodcanadian on Thursday February 25, 2021 @03:07PM
(#26267570)
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.
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| on HN ]
Yeah, 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.
Re:GameStop Is Happening Again
by goodcanadian on Friday February 26, 2021 @08:51AM
(#26274716)
Anyone 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.