You forgot "6. Sell all underlying shares and calls before everything collapses"... | Hacker News

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fluffything on Sept 4, 2020 | parent | context | favorite | on: SoftBank unmasked as ‘Nasdaq whale’ that stoked te...

You forgot "6. Sell all underlying shares and calls before everything collapses". At some point, market makers shouldn't be able to sell you more calls. That's when you dump.

PhantomGremlin on Sept 6, 2020 [–]

And, of course, when you dump, market makers need to also dump to reduce their exposure.

There's a potential for some seriously crazy non-linear feedback.

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