3 ms·

Sort of. Delta neutrality is a target, not a given. Gamma is what forces MMs to hedge. They have been absolutely steamrolled by gamma which would leave them mas

Sort of. Delta neutrality is a target, not a given. Gamma is what forces MMs to hedge. They have been absolutely steamrolled by gamma which would leave them massively net short when you’re facing 100-200% gaps.

ivalm 6y ago
They need neutrality by end of day per reg. Bid ask spread is wide precisely because it’s super volatile.
- qeternity 6y ago
  No they don't. What regulation are you talking about?