Posted by hillsyde on 13th of Jan 2010 at 05:21 pm
Total of ~$7.5 bln in notional exposure.....Sounds like the
someones with that kind of potential written call loss liability
will have a serious interest in seeing a minimum of 1150 on the SPX
at options expiration time. It's like maximum option pain,
minimization of total dollar expenditure to clear the open
liabilities.......
Posted by hillsyde on 13th of Jan 2010 at 06:10 pm
I'm not a serious option trader but, I think what ZeroHedge is
saying is that there are a few major players, or maybe only RBS
with an open position of calls at the strike price SPX 1150.
Their call position is most of the 65k of open interest"
these players do not care about max pain which is a subject of
concern for the market makers (broker/dealers). Only their
own self interest.........................
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1150 SPX by Friday expiration? ZeroHedge
Posted by hillsyde on 13th of Jan 2010 at 05:21 pm
Total of ~$7.5 bln in notional exposure.....Sounds like the someones with that kind of potential written call loss liability will have a serious interest in seeing a minimum of 1150 on the SPX at options expiration time. It's like maximum option pain, minimization of total dollar expenditure to clear the open liabilities.......
above 1150 or below?
Posted by junkie on 13th of Jan 2010 at 05:39 pm
Then to give those guys a big loss, market should move down, not up. The last time I checked the max pain number was 112 on SPY.
I'm not a serious option
Posted by hillsyde on 13th of Jan 2010 at 06:10 pm
I'm not a serious option trader but, I think what ZeroHedge is saying is that there are a few major players, or maybe only RBS with an open position of calls at the strike price SPX 1150. Their call position is most of the 65k of open interest" these players do not care about max pain which is a subject of concern for the market makers (broker/dealers). Only their own self interest.........................