How Options Market Structure Controls Intraday Price Action: GEX, Dealer Hedging, and the JP Morgan Collar Trade Most traders watch price. Sophisticated traders watch flow. But the traders with real structural edge watch what dealers are forced to do — because when the biggest participants in the world’s largest options complex are compelled to hedge, markets move […]
gamma hedging
How an Option Pin Plays Out
The current October options expiration portrays how an options pin can play out. For several days we have seen 3000 as our high gamma strike, with options volume at 3000 strike dominating the market. As the market moves away from this strike options dealers and other options hedgers move the price “back in line” to […]