05-27-2013, 03:07 AM
'trans' pid='23131' datel Wrote:the options market maker is delta hedging and I don't think he likely holds the sold put long enough,,or more likely , he just naked shorts the common stock for his hedge
Well, yes, but if we sell puts, that blunts the put buying by the shorts and set you up for a nice return at the same time, either collecting highly inflated premium or stock at distressed levels.

