3309 Drysdale Ct
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The market maker can sell the shares and pocket the spread. Risk-free trade for him. If it is a put buyer, then maybe they think LNG will collapse further. Either way, the MM pockets the spread by buying/selling underlying shares.
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The market maker can sell
LNG
Posted by darnelds on 8th of Mar 2011 at 04:58 pm
The market maker can sell the shares and pocket the spread. Risk-free trade for him. If it is a put buyer, then maybe they think LNG will collapse further. Either way, the MM pockets the spread by buying/selling underlying shares.
Got it -- the rise in premium could make the trade worthwhile playing both sides. Thanks.
Posted by lessarda on 8th of Mar 2011 at 05:05 pm