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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?


To: Sun Tzu who wrote (83254)12/21/2023 3:43:11 PM
From: Qone01 Recommendation

Recommended By
ajtj99

  Read Replies (1) | Respond to of 97932
 
Delta hedging is buying the underlying as you sell the call option. Gamma hedging is buying a option to protect a naked underlying position as I understand it.

So lets look a one trade.

The .47 low was at a bullish 6000tick bat completing Now if the the MM who sold that to me is fine if he delta hedged it. There was about 10k contracts sold in that completion window. The MM would make the premium burn and I'll make a 3 bagger.

Now if he didn't delta hedge, he would have lost twice the amount of premium he collected.

For him to Gamma hedge he would have to join me in buying calls. See how that does not make any business sense?




To: Sun Tzu who wrote (83254)12/21/2023 4:18:12 PM
From: Qone02 Recommendations

Recommended By
ajtj99
Sun Tzu

  Read Replies (1) | Respond to of 97932
 
I see BLUE did a 120 million dollar offering at $1.50. So it should be pumped again in about 6 months. It could easily drop under a dollar and do a reverse split to make the stock price marginable again.

They,