samerh 6 Report post Posted September 12, 2013 (edited) A question I've always had is around the "zero sum game" concept. When I buy a butterfly or condor, for example, is someone else selling a fly or condor or is ToS etc routing puts and calls in all manner of combinations to give me a fly? Edited September 12, 2013 by samerh Share this post Link to post Share on other sites
jfouche 12 Report post Posted September 12, 2013 To my limited knowledge, the whole spread reaches the market makers, and they would go short the fly/condor until they can hedge through whatever other combination of calls/puts/stock they need. I imagine spreads also could match to customers too, like if some customer was happening to short the exact fly/condor you want. Share this post Link to post Share on other sites
Kim 7,512 Report post Posted September 12, 2013 Whoever is trading those options with us might end up with completely different position. Part of the spread can go to market maker, other part to another retail trader. Some might buy/sell as part of speculative trade or hedged position. Share this post Link to post Share on other sites
samerh 6 Report post Posted September 12, 2013 OK thank you both. So it gets split up and isn't a strict one-to-one. Share this post Link to post Share on other sites
