$Futu Holdings Ltd (FUTU.US)$ Deep ITM puts versus calls for...

Cheekibong : Could you please explain what does this imply?

Mike Hunt OP Cheekibong : Deep ITM options are very expensive and it’s almost exclusively the institutional side that purchases them.  Retail buys out of the money or just in the money options that are much cheaper.  Example, 1000 contacts at $.05 is $5000 total.  1000 contracts at $10.00 is 1 mil.  So deep ITM options tell you where the smart money is …. And the tutes always win

Cheekibong : Thank you!
So I guess this means they are betting the share price will drop further so they can sell the puts?

Mike Hunt OP Cheekibong : They aren’t betting.  They control the price.  How? The most important player in setting the price is the market maker.  They will move both the bid and the ask above or below the last sale price if they feel like it.  The market maker or MM is from the hedge side.  

Mike Hunt OP Mike Hunt OP : All that naked shorting to create imaginary supply to artificially supress the price? That’s the MM.  They can naked short 4x the float if they need to kill retail buying demand

Cheekibong : Wrong choice of word. Thanks for explaining!

Ineedtosleep Mike Hunt OP : Does that means that MM is confident that the price will reach at least 90 by Nov?

Ineedtosleep Mike Hunt OP : Thank you.