Let’s say for example that 100,000 people all bought CALL options for AMZN stock that calls for AMZN to be at $4000 a share in March of this year.
Does the mass purchase of these options actually affect the value of the underlying stock?
If so how? And by what mechanism is the price driven by that?
To me it seems like it’s just 100,000 people making a prediction but that they could all be completely off and the price is unaffected.
Submitted January 01, 2021 at 09:34PM by JamieOvechkin https://ift.tt/352oykj
