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A video that explains how market makers delta hedging Vanna/Charm exposures can affect price movements; made in collaboration with @jam_croissant
Hopefully the financially semi-literate (Like myself) will find this useful~
KeyPaganRush
11.9K posts
KeyPaganRush
@KeyPaganRush
Finance-Noob, Retail carrywhore, Biotech stonk punter, professional rage-baiter
Joined November 2019
- Intuitive understanding to options You might have heard that options represent the full distribution of the market and are thus the real underlying. Sure you can argue, in the English sense of the word, that they are not underlying, but that viewpoint is useless for making money,
- Young's Double Slit experiment. The results of the experiment change depending on whether you are observing it occur or not. Search it up, there will be many short easy-to-follow explanations online
- New video on the delta hedging of the delta skew, made in collaboration with @jam_croissant youtu.be/ibaPuJgTgOs Trying to share what I've learnt after trying to get my head around this 😅 The second scenario seems pertinent to now.
- Replying to @netcapgirlIt forces one to be able to engage in abstraction; which is a skill worth developing and can hopefully transfer to topics outside of calculus
- Replying to @KeyPaganRushand for anyone who is completely new to the delta hedging activity of market makers, this is another video I've done that explains delta hedging of Gamma exposure. youtu.be/zfkOCc2evEk
- An introduction to gamma and vanna exposures and how MMs delta hedge them. Based on the paper by @SqueezeMetrics , who kindly gave permission and a review over the first draft. Hopefully this will be useful for the financial semi-literate (Like myself) youtu.be/SZJv1QvM_PQ
- Come buy my 300 strike calls then; otherwise go back to cleaning your room, LARPer.I firmly expect oil to hit $300 a barrel before this is over. And that might be optimistic. The writing is on the wall. google.com/amp/s/www.cbc.…
- I'm beginning to realise how boring and repetitive finance "alpha" is More often than not, its just price-insensitive transactions or regulations allowing certain exposures to be dynamically replicated cheaper/more expensive and just going long the cheaper one and shorting the
- Replying to @jesse_stein and @headfallsoffLocked himself in the office of a military base with some friends, gave a poorly-received speech to the soldiers to induce them to coup, committed seppuku and then it took 4 attempts from his friends to decapitate him.
- She was a little reluctant at first, but then I said that the ring comes with an NFT and that tipped her over to yes.
- @DiMartinoBooth @vol_christopher @RealVision What I find scary about the riots at the moment, is that they are already this bad without the US pension system having collapsed... Full interview: youtube.com/watch?v=SkfgEZ…
00:00 - So during a pirates of finance episode, there was a quick discussion on the importance of looking at Fixed Strike Vol vs just blindly following VIX Lets start off with the VIX; for reasons we won't go into, the VIX is influenced more by the Implied volatility of OTM calls/puts
