May 17, 2011 -?
CHICAGO (TheStreet) — Most writers at many of the financial media outlets will tell you that they are writers, not financiers. While at first that may seem like a problem, I have found that most of the time the financial publications relate difficult topics to those in the general public in ways that they are likely to understand.
The only time this agreement doesn’t work is when a reporter writes a story without a full understanding of the concept and the editor publishes it with the same lack of understanding.
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“When market-makers are sold premium, they must scalp gamma in order to defend the decay of the long options they own. This is an especially major issue in the weekly options like AAPL where market makers are constantly being sold premium,” said Mark Longo, founder of TheOptionsInsider.com. “The issue market-makers are having in the weekly options is that they are being so inundated with premium, they almost stack the deck against themselves.”
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