3 ms·
The opposite. We have huge numbers of people 'rocking the boat' trying to create say.... a Gamma Squeeze. The only reason everyone trusts a Gamma Squeeze can
by dragontamer 2y ago
The opposite.
We have huge numbers of people 'rocking the boat' trying to create say.... a Gamma Squeeze.
The only reason everyone trusts a Gamma Squeeze can happen is because they trust the math in Black Scholes. The may not even understand the math, just trust that the YouTuber who told them about Gamma Squeezes had enough of an understanding
------------
Today's problem IMO, is now a bunch of malicious players who are willing to waste their money are trying to make 'interesting' things happen in the market, almost out of shear boredom. Rather than necessarily trying to find the right prices of various things.
Knowing that other groups follow say, Black Scholes, is taken as an opportunity to mess with market makers.