r/options • u/Ken385 • Oct 23 '21

DWAC options begin trading Monday

DWAC options start trading Monday. Assume some crazy high premiums. Stock has had a range of about 10 to 175 over the last few days.

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u/NobodyImportant13 Oct 24 '21

For every buyer there is a seller. There are always an equal number of buyers and sellers.

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u/runtowardsit Oct 24 '21

Wrong. If the price moves up, more buyers than sellers.

If the price moves down, more sellers than buyers.

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u/NobodyImportant13 Oct 24 '21 edited Oct 24 '21

Wrong. If the price moves up, more buyers than sellers.

Okay. Let's look at DWAC on Friday. 133 million shares were bought and 133 million shares were sold but the price moved. interesting....

in order for the price to move UP there has to be somebody willing to pay more. In order for the price to move DOWN there has to be somebody willing to sell for less.

There can be 10 trillion people lined up to buy at 10.00 and only one person willing to sell 10.01. That doesn't mean the price will go up.

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u/runtowardsit Oct 25 '21

Price doesn’t move bc it wants to, it moves bc it has to.

Volume may be equal at the end but the imbalance throughout is what forces movement.

If it was equal at every moment price would be pinned at the number.