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Floor traders are not there to take the other side of a trade. The minute your market maker completed his option trade he hedged it by buying or shorting shares at the equiv delta risk. This is one reason spreads widen on option sales when the market gets busy, and the reason there is put side volatility skew. In both cases it's covering the risk that the price will move before they can hedge their position.


I wrote options software for 4 years (and was in FinTech for 12) and I am just writing this to say that this is right (in case you are wondering).




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