Delta Hedging

Low Intraday Volumes: Predictable Flows Stand Out Most intraday order flow is unpredictable. It comes from macro news, big institutions, or surprise events. But one source of flow is systematic: d…

The Fund Behind the Trade First, some context. JP Morgan’s Hedged Equity Fund (JHEQX) is one of the largest hedged equity vehicles in the world. It uses a put spread collar strategy designed to de…

Gamma: The Core of Dealer Reflexes Gamma represents how fast delta changes when the underlying asset moves. As expiration approaches, option gamma becomes more sensitive, especially for at-the-mon…

Long Gamma, Gap Downs, and Dealer Reflexes First, let’s establish the premise. When dealers are long gamma—typically due to customer positioning in short-dated options—they are structurally positi…

Let’s break this down in this article What is Delta Hedging? At the core of Net DEX lies delta hedging — a risk management strategy used by market makers to stay delta-neutral. When options are…

What Is Delta and Why Hedge It with Delta Hedging? Delta measures how sensitive an option’s price is to changes in the underlying asset. For example, a 0.50 delta call option will gain about $0.50…

The Core of Opex: SPX and VIX as Primary Drivers While every stock and ETF has its own options expiration cycle, SPX (S&P 500 Index) and VIX (Volatility Index) expirations tend to command the…

In this article we will go over the importance of Dealers Gamma Hedging and the impact in price action. Why Dealers Hedge Gamma Options expose dealers to delta risk—the risk of price movement i…

In this article we will go over the importance of the Greek Gamma and the impact on Dealer Hedging activity. What Is Gamma and How Does It Work? Gamma measures the rate of change in delta – the…