Fibocrypto t1_j6m11sr wrote
All of the option sellers I've ever talked to never buy thier short puts or calls back . If a person is long the stock and the short calls get exercised they simply sell the stock . III f the short put option goes in the money they then buy the stock. What you are looking at might work and if so you could use it as part of your own entry or exit stradegy but for me I'm not sure
ariesdrifter77 OP t1_j6m5yjx wrote
The only way these contracts that I’ve stated could lose open interest is if they are “ bought to close” by the writer (owner holding the shares). It doesn’t have to be a institution or market maker. It can be someone with a lot of shares . like insiders who are working above the line at Las Vegas sands and know their stock is about to melt up and don’t want to get exercised. After stonk goes up they sell some fresh ones to degens who have fomo and while the IV is higher to collect bigger premiums. This could be totally wrong but this is how it looks to me
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