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tehs1mps0ns t1_j6mutxr wrote

The drop in OI is the result of investors closing their long calls, not market makers closing their short calls. Just look at the volume and price action on 01/26 (indicative of increased demand for calls, not increased supply of calls). That volume created a surge in OI, which then reverted back the next day. Market makers don't care, they are gamma and delta neutral (hedged).

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Aggressive-Wrap7211 t1_j6n5wkl wrote

Yeah I don't understand why OP thinks market makers are closing their short positions because of upward risk. Market makers are just selling to dumbasses buying OTM calls, while they simply hedge and get premiums. Less OTM calls means less demand.

This is a buy-side signal. Not a sell-side one.

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