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/biz/ - Business & Finance

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>> No.52477707 [View]
File: 124 KB, 1280x700, 0_xXF9J5QFpmkGkyf8-fb14d2e0fb314dbea11f8af549b7eb5f.jpg [View same] [iqdb] [saucenao] [google]
52477707

>>52477622
Supply and demand.
Why would there be more buyers than sellers? People are expecting a big move.
Why would there be more sellers than buyers? People are expecting a crab.
Furthermore, the demand for calls/puts at any strike on any date pushes up the prices in the rest of the options chain. Why? It would create arbitrage opportunities if it didn't (box spreads, debit spreads for a credit, credit spreads for a debit, free calendar spreads, etc.)

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