Every time you buy or sell an options contract, you're transacting with a market maker (dealer). Dealers aim to be delta-neutral — they don't want directional…
GameStop in 2021. Volkswagen in 2008. Periodic meme-stock explosions that leave analysts baffled. The mechanism behind many of these moves is the same: a gamma…
Dealer hedging is the mechanical buying and selling that options market makers do to stay delta-neutral. It creates structural price flows that explain why…
Hedge walls are concentrations of open interest at specific options strikes that create structural buying or selling pressure as the underlying price…
What Are Gamma Levels in Options Trading? Gamma is the rate at which an option's delta changes when the underlying moves by $1. Gamma levels are the…
How Market Makers Affect Stock Price Movement Market makers affect stock price movement through delta hedging. When they sell options to customers, they take…