it will hit 90.
93/7 call:put ratio. enormous number of call options for 90C
look up delta hedging by brokerages
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MomentumPython1337 OP : target hit
MomentumPython1337 OP : where are those who said this stock sucks...?
darkhorse : Why did they delta hedge?
MomentumPython1337 OP darkhorse : too many call options are being bought, market makers have to take on the risk of ensuring those calls can be exercised
there are 2 risks
1) retailer A sold the call option. the stock price explodes and call contract gets exercised in the money. retailer A doesn't have the cash or margin to buy 100 (or more) shares of stock.
2) market maker wrote and sold the call option. same thing happens, stock price explodes and call contract gets exercised. market maker loses large amount of money from having to buy the stock at high price to sell at strike price.
to protect from both risks, market maker will usually buy equivalent stocks at current price, when new call options are getting written and bought by others.
i don't know how often they do this but usually for popular stock with large call open interest I think they will hedge. same for large put open interest
if call open interest greatly exceeds put open interest, it is likely to cause the price to rise in the short term due to this hedging effect. of course, this is temporary and short term