The current price on Apple is 174 at the close.
Market makers have been using apple as a way to pump the market before the greatest crash since 2008. Based on volume and open interest of 145c and 175c calls, market makers have created thousand of spreads.
VRVP indicates a midline of 150 so a 145c call would be minimally influenced by theta burn from a quick drop in the market. So what did the market makers do, they purchase 145c calls as "equity" to their spread, PUMPING the price up over time, weeks and weeks at a time, and now selling 175c calls into the market, directly to blind retail traders. What's going to happen if they all sell their 145c calls, that's HUGE equity being liquidated, support levels disappearing and a correction will be necessary to fill the gap.
With calls being at 175, and Apple closing at 174 while testing 175, they maximize their profit on 175c calls because these positions on at the flipping point between being in the money and out of the money, gaining the extrinsic value of momentum for a potential leap above 175, on top of the intrinsic value of being above the breakeven price level.
I expect a HUGE short in pre or today's aftermarket. Because 175c calls will be destroyed, DESTROYED, if apple opens at 173 or less. and what will happen, these 100,000 calls sold into the market are going to realize how saturated they are and when one starts selling next thing you know the calls are worthless and this will cause mass selling.
I truly believe D Day is tomorrow, with these options expiring, market makers will literally just EXERCISE their 145c options and sell them all into the market, in American markets you can exercise calls at any time, especially in pre-market.
Truly fascinating that market makers are allowed to make this, but I guess it's how the cycle sustains itself, destroying the middle and lower class that invest their savings because then they need to work forever as slaves for the people at the top, truly fascinating.
Market makers have been using apple as a way to pump the market before the greatest crash since 2008. Based on volume and open interest of 145c and 175c calls, market makers have created thousand of spreads.
VRVP indicates a midline of 150 so a 145c call would be minimally influenced by theta burn from a quick drop in the market. So what did the market makers do, they purchase 145c calls as "equity" to their spread, PUMPING the price up over time, weeks and weeks at a time, and now selling 175c calls into the market, directly to blind retail traders. What's going to happen if they all sell their 145c calls, that's HUGE equity being liquidated, support levels disappearing and a correction will be necessary to fill the gap.
With calls being at 175, and Apple closing at 174 while testing 175, they maximize their profit on 175c calls because these positions on at the flipping point between being in the money and out of the money, gaining the extrinsic value of momentum for a potential leap above 175, on top of the intrinsic value of being above the breakeven price level.
I expect a HUGE short in pre or today's aftermarket. Because 175c calls will be destroyed, DESTROYED, if apple opens at 173 or less. and what will happen, these 100,000 calls sold into the market are going to realize how saturated they are and when one starts selling next thing you know the calls are worthless and this will cause mass selling.
I truly believe D Day is tomorrow, with these options expiring, market makers will literally just EXERCISE their 145c options and sell them all into the market, in American markets you can exercise calls at any time, especially in pre-market.
Truly fascinating that market makers are allowed to make this, but I guess it's how the cycle sustains itself, destroying the middle and lower class that invest their savings because then they need to work forever as slaves for the people at the top, truly fascinating.
Comment:
I assume market makers will make apple close between 172.5 and 175 to destroy both sides of retailers, bulls, and bears who bought their calls for 175 and their puts of 172.5. It's kinda funny how obvious these firms are, I should just start following what they do and let them do the work for me lol.