ACWho is trading by using synthetic shorts? - Hedge/Mutual Funds...

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Who is trading by using synthetic shorts? - Hedge/Mutual Funds and individuals? Thanks in advance

Synthetic Shorts
Synthetic Short Sales consist of selling calls and/or buying puts. Some synthetic short sales consist of selling calls and simultaneously buying puts both with the same strike price and expiration date (referred as conversions in exchange lingo). These "conversions" have what is referred to as 100 negative deltas. The effect of a 100 negative delta "conversion" is almost the same as a naked short sale of 100 shares. There is no borrowing of stock and in effect the converter, who does the trade at theoretical values with a contra party, receives interest on the proceeds.

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