Subject: option pricing
Comments:
Please explain how market makers are pricing options in volatile traded
stocks.
Just an example I am not involved either way.I am looking @ SPWR last 78.47
+ 1.28
and perusing the QSUHO Aug 75\'s
5.70 - 6.60 721 by 3409 (5 separate bidders and ask 7 separate
sellers)
Now if someone hit the bid wouldn\'t the MM\'s have to sell short the stock
in order to have hedged positions?
Comments:
Please explain how market makers are pricing options in volatile traded
stocks.
Just an example I am not involved either way.I am looking @ SPWR last 78.47
+ 1.28
and perusing the QSUHO Aug 75\'s
5.70 - 6.60 721 by 3409 (5 separate bidders and ask 7 separate
sellers)
Now if someone hit the bid wouldn\'t the MM\'s have to sell short the stock
in order to have hedged positions?
