Some academic studies have documented that market makers short index option and long equity option on net. It is easy to understand that Non market makers want to buy index option because of their crash-phobia. But why do Non market makers short equity options on net? How should I understand this?

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    $\begingroup$ For a paper, study, or anyone to suggest that market makers and non-market makers act in such ways categorically and continuously, without fail, is complete nonsense. What you should understand about this is that you shouldn't believe everything that you read. $\endgroup$
    – amdopt
    Oct 25, 2019 at 20:51
  • $\begingroup$ @amdopt Is it not true that market makers (particularly on the sell-side) tend to be short vol? and that historically, being short vol is more profitable than being long vol? $\endgroup$
    – actinidia
    Sep 28, 2022 at 0:13
  • $\begingroup$ @actinidia -- My comment made no mention of tendencies or long-term profitability. I used the words "categorically" and "continuously" on purpose. $\endgroup$
    – amdopt
    Sep 28, 2022 at 11:35


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