tag:blogger.com,1999:blog-808460835100252240.post1375774913224534535..comments2022-09-01T15:12:33.736+03:00Comments on The Money Demand: George Soros and naked CDSUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-808460835100252240.post-27749211921975907092010-03-12T20:25:28.918+02:002010-03-12T20:25:28.918+02:00Curious, thanks, now I have changed "speculat...Curious, thanks, now I have changed "speculating on the short side of puts" to "speculating on the short side by buying puts".<br />Delta hedging pressure works both ways in stocks, because both puts and calls are allowed by regulators. CDS-bond arb also works both ways, depending on which side of CDS market maker is trading. The point is that there is no breakdown of symmetry alleged by Soros, neither in stocks nor bonds.themoneydemand.blogspot.comhttps://www.blogger.com/profile/13082972557599397165noreply@blogger.comtag:blogger.com,1999:blog-808460835100252240.post-53518639945114157632010-03-12T16:26:32.512+02:002010-03-12T16:26:32.512+02:00By "speculating on the short side of puts&quo...By "speculating on the short side of puts" I believe you mean "speculating on the short side of the market by being long puts", since being short (naked) puts has limited potential for gain and essentially unlimited potential for loss (even though the sign of the time decay favors the short put position). And yes, being long/short puts to be short/long the market exerts downward/upward pressure on stock prices through the delta hedging of option market makers.<br /><br />At the moment I am in fact on the short side of the market via a long put position, and I can verify that at times like this the awareness of these matters becomes all too acute.Unknownhttps://www.blogger.com/profile/01886074026063358802noreply@blogger.com