Zero sum game?

[Guest]

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

[Guest]

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.

[Guest]

OK thank you both. So it gets split up and isn't a strict one-to-one.