Posted 5/15/2019 21:38 (#7499188 - in reply to #7499162) Subject: RE: How do "they" decide where to start a new futures month
South Central Iowa
Bid and ask. It is the point at which a person willing to buy and sell meet. So it’s the same as all contracts and market derived.
People buy deep in the money puts or calls because the have a delta of 1 or close to and move with the market like a future. Why? I don’t really know why they don’t just buy a future. I say people, but really it’s funds that do that. Probably some option play on decays or something. Could just be an options only fund. Don’t know.