Through an options market lens, the following text will add color to some recent market movements.
put wall
The Theory Behind Put Walls
2900 in the S&P500 is identified as a strike with large put interest in SPX options. The theory behind put walls is as follows: We make an assumption that most of those puts were bought by hedgers, therefore market makers and dealers are short those 2900 puts. As a result they must short sell stock […]