The 110 put holders are likely hedged. Those that are short puts at 107.50 and higher will need to decide what to do with whatever shorts they have in futures against their put shorts. The holders of calls will likely sell on the way up and of course the short calls will need to decide whether to cover or not. The problem with the market is that longs are, as usual, eager to sell and compete as prices attempt to rise. Whether the buying is, rebalancing or fund short covering or option related buying, longs will sell. According to the OI, it appears that there are new sellers as well. Iím not saying that the market canít rally but it will be a struggle.
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