SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Waiting for the big Kahuna
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Casaubon who wrote (81167)9/20/2008 12:35:30 PM
From: Real Man  Read Replies (1) of 94695
 
When you hedge your portfolio by buying a put option or
selling short the call option, the MM will enter the opposite
position. His position is then a bullish position.
In order to make that position market neutral, or delta-hedged, the
Market Maker must short some underlying shares to hedge his
market risk, and adjust that hedge dynamically (their
computers do that) as the market moves. Market Makers never
sell options unhedged.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News