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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?


To: mishedlo who wrote (82545)6/20/2002 7:48:52 PM
From: mishedlo  Respond to of 99280
 
Augie, delta hedging has nothing to do with selling or buying of options.

It is shorting to protect against loss on puts that were sold.

It works the other way as well. If they (the options sellers) can not contain a move above max pain they buy the damn stock to protect against a loss on the calls they sold.

In either case the move is enhanced in the direction of the trend.

M