“Just like the Aug / Sep “pivot” from extreme grab to extreme vomit, if we were to continue rallying into Friday’s expiration, there will continue being a ton of stock to buy for the Dealers to remain delta hedged and extend the melt-up (i.e. late Aug)—but if we roll over and the individual stocks trade well below the strikes and the options again look “worthless” (back to last week’s levels, LOLOL), there then would be a massive puking of all that Dealer delta hedge, just like the Aug turn into Sep expiry (Note: the same thing would occur if the client were to unwind the position).”
Don’t have an account with SpotGamma?
Start a 7-day free trial today to view all key daily levels, Founder’s Notes, commentary, tools, and market insights.
Popular Posts
- Anatomy Of A Short Squeeze: This Is How Hedge Funds Pounce On Retail Meme StonksJune 9, 2021
- SpotGamma Models Indicate Net Options Delta Expiration at Over $125 BillionJanuary 14, 2022
- Weaponized Gamma ReloadedJanuary 31, 2021
- Goldman: All You Ever Wanted To Know About Gamma, Op-Ex, And Option-Driven Equity FlowsJune 10, 2020
- How a 2,360% Jump in Call Options Fired Up Tesla’s Share SurgeOctober 26, 2021