Taking deep OTM options out of the position near expiration

[jjwills345]

I'm wondering why market makers frequently take out long OTM front month options (calls and puts) out of their position and move them to a different account when expiration approaches. I know it has something to do with not wanting to see the delta of these options, but I was hoping someone could offer a better explanation.

Thanks

 

[sean]

This should answer your question. Comment: Option risk management with back-booking | Futures & Options World - Let's Talk Derivatives

 

[danishone]

I'm wondering why market makers frequently take out long OTM front month options (calls and puts) out of their position and move them to a different account when expiration approaches. I know it has something to do with not wanting to see the delta of these options, but I was hoping someone could offer a better explanation.

Thanks

Market Makers are bitchs!