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Openai/691df491-0d78-8005-ad11-12760f0fa16d
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==== You're right — they sell calls to make money, like covered calls or even naked. ==== But here’s the deeper game: | | | | --- | --- | | | | | | | | | | But when they sell too many calls and IV explodes, they suddenly get trapped: * Stock moves up * Your options gain delta * They’re forced to hedge by buying stock * Gamma kicks in → they buy more and more just to stay neutral * It spirals into a short-covering gamma melt-up
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