Who is (are) the market maker for $TSLA options? Citadel? They already have lots of shares. Doesn't seem logical that a Market Maker who wants to be hedged wouldn't buy shares within a few microseconds of selling a call and vice-versa. What are the rules for setting bid/ask spreads for market makers? Seems they would be miles apart. When some one party balls thousands of calls soon to expire soon and quite a ways out of the money, is the spread such that they can make a profit by selling their calls back to the market maker (or whoever) if they have gamma squeezed the share price up 1% or so? Or does it cost them money to make the share price go up? It happens often. If they consistently lose then there must be good reason that they keep doing it. We need details, not just definitions of what is a gamma squeeze.
Who is (are) the market maker for $TSLA options? Citadel? They already have lots of shares. Doesn't seem logical that a Market Maker who wants to be hedged wouldn't buy shares within a few microseconds of selling a call and vice-versa. What are the rules for setting bid/ask spreads for market makers? Seems they would be miles apart. When some one party balls thousands of calls soon to expire soon and quite a ways out of the money, is the spread such that they can make a profit by selling their calls back to the market maker (or whoever) if they have gamma squeezed the share price up 1% or so? Or does it cost them money to make the share price go up? It happens often. If they consistently lose then there must be good reason that they keep doing it. We need details, not just definitions of what is a gamma squeeze.