/biz/ - Business & Finance

>>30236711
>when it seemed like the money wasn't gonna go so high.
that's exactly what I think too.
>are Market Makers subject to the same margin call rules as other institutions?
I don't get exactly what you mean, if the call is ITM and the contract holder executes it they have to buy the shares (if they don't already have them, which they most likely don't).
I you mean a margin as in they have to buy the shares if it seems that it's now likely it could get to that once ridiculous price point, no.
>because it means shares are locked up
ok, so if the MM is delta neutral, so holding shares, I believe they wouldn't sell it now, and unbecome market neutral, until the contract is expired; because their decision of not selling naked calls is proving to be the correct one, the price is actually rising.
having that as an assumption, it means they are holders like us, tightening the float %, ever since they first sold the contract.
When/if the contract expires ITM they just give the shares to the contract holder. Now, if the contract holder is a shorter, he can cover his shorts with that; if the contract holder wasn't a shorter he might hold the shares a little longer to see the price rise or sell immediately.
>But if someone is purchasing ITM calls and buying them
can you rephrase that?