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polloponzi t1_j6lwp4u wrote

Reply to comment by ariesdrifter77 in The glitch in the matrix no one’s talking about : Notable decrease in open interest of OTM calls by ariesdrifter77

>Why would they” buy to close” an OTM covered call if they don’t think it’ll go ITM?

Because they are in profit and they would rather take the money than risk losing it because the market may keep going sideways or tank.

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ariesdrifter77 OP t1_j6lxod6 wrote

It’s possible they sold for higher premiums a while ago and they’re buying them back lower, I get that. But why not let them expire worthless or buy them back cheaper IF* the market goes sideways or tanks?

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polloponzi t1_j6lyhzr wrote

They might have long calls and they might be 'selling to close'. Open interest will go down if those with long calls sell those to close the position

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AcceptableEnd8715 t1_j6myuin wrote

This. The majority of the call action was in the 410 and higher range and it seems likely we won’t get there before the major sell off

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