This isn't how any of this works. But since a lot of people seem to believe it is, here's what actually happens on expiration day.
Market makers don't sit in a room and decide to "bring stocks down" to make your calls expire worthless. They're delta hedging. When they sell you a call, they buy shares to stay neutral. As expiration approaches and those calls lose value, they unwind that hedge by selling shares. That mechanical selling creates downward pressure. It's not a conspiracy. It's math.
The reason price often gravitates toward "max pain" on expiration isn't manipulation. It's the result of dealers adjusting hedges on the largest open interest strikes. As options decay, the hedging flows compress price toward the level where the fewest options pay out. The effect is real. The intent isn't.
Nobody at Jane Street or any other market maker is calling people to preview next week's "algo tilt." That would be a compliance violation, potentially insider trading, and a fast way to end a career. If someone tells you they have a contact feeding them this information, they're either lying or being lied to.
Learn the mechanics. Ignore the fan fiction.
I have no illusions that this is a popular decision. I made this decision because Americans should not be fed lies about “massive election fraud.” Police should not be left to the mercy of a mob. Mobs should not be inflamed to disrupt the peaceful transfer of power.
Please consider working at Neuralink!
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Long-term: human/AI symbiosis
Latter will be species-level important
Work at either at our Bay Area or Austin locations
LOL. Bei #Shopify lag @CitronResearch tatsächlich total daneben. Ich hatte diese Short-Attacke schon 2017 auf meinem Blog mal thematisiert. Lustig das heute nochmals nachzulesen, damals war Shopify $10 Mrd. wert und viel zu teuer. ;-) https://t.co/7Btx9y3nWH
u can’t sell houses u don’t own
u can’t sell cars u don’t own
but
u *can* sell stock u don’t own!?
this is bs – shorting is a scam
legal only for vestigial reasons
Bowie would have turned 74 today. But his prediction of how the Internet would change our lives (back in 1999!) remains timeless.
#RIP
(via @BrianRoemmele)