Things that went whizzing by that I want to remember... When you buy an option from somebody who then delta-hedges it, what you really have done is: (a) taken a very small position in the underlying, and (b) committed to a positive-feedback trading strategy that will continually plow a very large share of notional profits you may earn on your position back into the underlying by massively raising your leverage...
BRIEFLY NOTED: For 2021-04-12 Mo
BRIEFLY NOTED: For 2021-04-12 Mo
BRIEFLY NOTED: For 2021-04-12 Mo
Things that went whizzing by that I want to remember... When you buy an option from somebody who then delta-hedges it, what you really have done is: (a) taken a very small position in the underlying, and (b) committed to a positive-feedback trading strategy that will continually plow a very large share of notional profits you may earn on your position back into the underlying by massively raising your leverage...