RogThe I-banks are short the puts and therefore they are hedged. If we go lower they add to their hedges, putting more pressure on the market. If we go higher they remove hedges, adding more fuel to a rally. As usual derivatives add to the underlying volatility counter to popular convention.
Alexis Glick on Crapvision is on and on about the HUGE Open interest PUTS on the QQQ34 and SPX1075 [if I got that right] on the Option Market...saying earlier that they will have to be closed and of course implying..rally time !!!
Tom O'Brian along with Wolanchuck says its a forgone conclusion that we rally into option expiry..so I guess thay agree with Alexis
Crapvision should remind their viewers that I-banks and borkers are in the business of collecting the commish.
You do a great service to this thread
Your posts are so appreciated