220: Erik Swanson – Meet the Market Makers on the Other Side of Your Trade
Chat With Traders
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Is Call Buying a Factor in the Stock Price Rally?
In the most frenzied days of meam stock movement, we were seeing tremendous surges of options activity, including a lot of call buying. I can't say with any concrete certainty that that's really what was happening. But it seems plausible to me that it may have been a factor. As the stock goes up, we get more short exposure, we need to buy even more. And there can be a bit of a snowball, a fact that causes the stock to move quite a bit.
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