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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: NucTrader who wrote (33547)11/16/1999 10:33:00 PM
From: HairBall  Respond to of 99985
 
NucTrader: What is "delta hedging?

Ok, read the following link, it will explain it for you.

finpipe.com

Regards,
LG



To: NucTrader who wrote (33547)11/17/1999 2:27:00 PM
From: pater tenebrarum  Respond to of 99985
 
NT, re: delta hedging: trading desks sell naked calls on stocks and indices. as soon as the underlying blows past a strike price, they buy the stock to 'delta-hedge' their open short call position. the day after expiration the stocks bought for the hedge are sold right away.
that's why the week after expiration is often weak, especially if the market was up sharply ahead of it. July expiration makes for a good example....

regards,

hb