that I have all destroyed your eyes and the only thing left you can think about are virtual Boy graphics + GameStop. I made a complete overhaul and went grey just like GameStop did. I asked some Redditors to look over it (special thanks to: ) and after some smaller adjustments of the overhaul here is the final product. Ready to download:
Because some of the slides may not be fully understandably without context, I am going to explain some of them with multiple comments.
5) This is about buy writes and how they reset the timer. In this example short seller, A buys the equal amount of calls and puts with the same expiration date and strike price. With those you can create synthetic shares which you of course sell short. However, because they are synthetic you owe the person in this case C actual real shares. You as the short seller don´t want to buy them so you go to the second part. Here you invite in most cases a market maker (B) you pay to take the other side of the following trade. This trade goes as follows your selling deep ITM calls to B while A is buying synthetics from B. Now you use does synthetics to claim you have made a locate. Now the third part comes into play because B will now use the ITM calls he bought from A to close out his short position from selling synthetics to A. A knows that he will be the one assigned to fulfill this and will know either close out the short position he has with C with the synthetics and will have a new one open because he owes the shares now to B or he will close out the one he has with B by using the synthetics and will leave open the one with C. Either way a naked short position will always be let open and the timer got reset because you made a locate.
https://www.sec.gov/comments/s7-08-08/s70808-318.pdf
https://www.sec.gov/about/offices/ocie/options-trading-risk-alert.pdf