Sunday's light reading: Markets will be shut down

Why do people come up with “analysis” but never look at the numbers. These moves weren’t options/vol products driven at all - you can simply look at the volumes and compare that to the outstanding gamma.
 
Same Lazy Element said:
Why do people come up with “analysis” but never look at the numbers. These moves weren’t options/vol products driven at all - you can simply look at the volumes and compare that to the outstanding gamma.
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Delta hedging should help the moves though. Adding fuel to fire.
 
so i would like resident options experts to help me understand this bit: ‘during a downturn, firms want to hedge using puts and become short gamma’

you end up short gamma buying protection?
 
traider said:
Delta hedging should help the moves though. Adding fuel to fire.
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Or the opposite, dampen them, depending on the direction of the dealer positions which are very hard to figure out. My point is that either way, the volumes going through the markets are order of magnitude higher than the sizes of delta rebalancing even if you assume that the outstanding interest is one-sided.
 
And the futures are locked limit down after Donnie forcing the Fed to cut the rate. Panicky move, market not likey.
 
Pekelo said:
And the futures are locked limit down after Donnie forcing the Fed to cut the rate. Panicky move, market not likey.
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They should have held off on these two "emergency cuts" until Wednesday. Boneheads! It was just 2 weeks away from the first cut! Don't they have anyone there who knows the financial system, and is good at it?

(Oh, apparently not.)
 
Overnight said:
They should have held off on these two "emergency cuts" until Wednesday. Boneheads! It was just 2 weeks away from the first cut! Don't they have anyone there who knows the financial system, and is good at it?

(Oh, apparently not.)
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went long Friday huh?
 
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