Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

On a single contract, maybe, but remember that the counterparty is usually a market maker who doesn't take directional risk, their game is to bet that the cost of delta hedging is less than the premium they collect, and that's more of an implied vs realized volatility thing than a directional thing. Even if we took it for granted that Michael Burry was smart money, to a first order approximation the dealers don't care and would be happy to earn fees for managing his leverage.


Yeah what usually happens is they match it with call purchases and thus they are not actually your counterparty economically.

There is enough bullish momentum that a trade of this size can actually be placed (of course in chunks).




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: