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I'll take a shot at explaining. | 393 comments | Create New Account

Comments belong to whoever posts them. Please notify us of inappropriate comments.

I'll take a shot at explaining.

Authored by: sd_ip_tech on Sunday, May 27 2012 @ 04:52 PM EDT

Hadn't thought about options. But, of course, whoever makes the option market
must either find a counter to cover the short with a borrow or buy themselves.
The only way they can make money is if it is a wash for the firm. Do I have that
right? Options are another way to short BUT it costs cash to do so. That is an
expensive way to gamble, imo. Still, it is an effective hedge as are futures and
CDS, etc.

---
sd_ip_tech

[ Reply to This | Parent | # ]

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