How do you 'write' a call?

[Seneca60BC]

I dont think Long Put options are affected because trading options we do not own the shares and do not have any shares to borrow - unless we write a put - is this correct ?

 

[wayneL]

I dont think Long Put options are affected because trading options we do not own the shares and do not have any shares to borrow - unless we write a put - is this correct ?

Option market makers use combinations of options and shares to hedge their risk.

The last thing an MM wants is delta on his books. Because of the pattern of trading by the public, MMs usually end up long delta so must short stock to get neutral.

This means that unless able to short, MM won't take the risk to deal with you... or make the spread ludicrously wide to cover his risk.

 

[moXJO]

This whole thing has gone past the point of stupidity. This will create a massive mess. So much for options trading.