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Openai/691df491-0d78-8005-ad11-12760f0fa16d
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===== Now flip it. ===== You come in and buy a $180 put. You’re saying: “If this car crashes below $180, I want you to buy it from me at $180 — even if it’s only worth $150.” Market maker’s thought: : So what do they do? 🔻 They short the stock now. If the car crashes: * The value of the short goes up (since NVDA fell) * That gain offsets the loss from your put ✔️ Again — delta neutral. They short to offset the put premium risk and slowly adjust their exposure as more puts pile in or as NVDA drops further.
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