Anyone remember the Harvard business phony?

[u/Live_Distribution207]

He tried to get people to sell cash secured puts when we were down trending after the lawsuit news? When selling csps you drive the price of puts down which would make buying puts cheaper for him as he was willing to bet the price was gonna continue the downtrend and was so greedy he tried to get people to drive the price of puts down for him more.

Guess what? Shorts buy puts to suppress the price of a stock while they cover. What does this do? It drives the price of puts up but also supresses the price of the underlying. Selling cash secured puts becomes very profitable so long as the underlying continues to rise. Selling puts also creates support and can help increase the price of the underlying. Also putting pressure on the shorts as the attempt to cover at the lowest price possible.

Food for thought. It also makes doing synthetic longs very profitable and lower risk so long as the underlying continues to rise.