Huh.
I wonder why companies like Citadel have such giant businesses making markets in options and are willing to buy your calls?
I guess Citadel didn’t check with AI first when designing their options business.
Either Citadel has unlimited capital to give away, or they’ll bankrupt their options desk soon.
It’s astounding that such a large business could persist for so long when they are always buying calls with such unfavorable odds.
I guess the billionaire owners of companies like Citadel aren’t that bright and don’t even understand option pricing.
Here’s an explanation I prefer (also see the bolded part further below, that’s the punchline);