View Single Post
  #45  
Old 04-17-2006, 02:06 PM
Sniper Sniper is offline
Senior Member
 
Join Date: Jun 2005
Location: Finance Forum
Posts: 12,364
Default Re: The details of my Big Bet against Krispy Kreme

KKF,

First, the spreads on low volume stocks can also get quite large at times too. It is not a reason to not trade them. It is merely a reason to pay more attention to what you are doing.

Second, I believe the spreads were a bit tighter when he opened his positions. At least they were when I looked at them.

While market makers typically take the opposite side of options trades, which they then might hedge off with regular shares, anyone can trade options. The market makers might also be buying at the bid and selling at the ask, pocketing some quick $$$.

While each option trade involves 2 parties, one buying and one selling; the trades are not linked once the transaction is complete. Meaning that you don't need to reverse the trade with the same counterparty. Your position is simply part of a pool on one side of the trade.
Reply With Quote