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SD/ND/FL | A person never knows the reason why these trades get put on. Could be a spec long, could be a "cover your ass" hedge on a big short position, who knows.
A few years ago, a trading firm sold a boat load of calls on the CME group. CME rallied and they lost their ass on the short calls, enough that people thought might bankrupt the firm. Turns out they had bought a bunch of seats on the NYMEX exchange as a pairs trade with the short CME calls and made a combined killing on the two trades. Very hard to know ones intentions when looking at option trades | |
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corn
