Would there be a massive sell off tomorrow based on options?
I'm not too familiar with options but I assume if the option winners from yesterday cash out would this cause a lot of stocks being dumped tommorrow or would they continue to hold the bag? From what I know they tend to usually just cash it out but I'm not sure. Anyone with more knowledge please inform thanks
exact,y dig. Major hedge funds that are short bbry protect themselves with long calls ...if more call buying kicks in ...the larger sellers of the calls often have to then buy stock to protect newer short call positions. So it feeds on itself.