FLU, that’s a good thing. If those market makers can’t hedge the puts they write with short stock positions, the options market goes haywire. Check out WM and other financials and look at the ridiculous spreads there.
If you can’t short, buy puts! If the MMs aren’t allowed to short, the spreads will make sure that it isn’t worthwhile to be long puts.
Allowing the MMs to short also gives retail investors a chance to profit from negative sentiments in the financials since we can’t short directly or get into any of the ProShares ETF at the moment.
