Join the Market Journal community for weekly direct market insights for FREE 👉 www.market-journal.com Use Code “RIZ10” for 10% Off or Code “WOR” for 20% off 👉 bit.ly/TradeZellaWOR Use Code "RIZ25" for 25% OFF ALL Challenges 👉 bit.ly/AlphaCapitalWOR Use Code "RIZ" for 20% OFF ALL Challenges 👉 bit.ly/AlphaFuturesWOR Free Telegram Community! 👉🏽 t.me/pocketsofrizdom
This has to be one of my favourite episodes of all time. You can just tell by the way Cem speaks and expresses himself, probabilities, Maths and market understanding is deeply ingrained and conceptualised in his brain to the point where its hard for him to translate his brains understandings of his complex and expansive knowledge of the market into english hahaha. Please Riz, you have to have him on again and try to get more in depth on how options fundamentally drive the market and how options actually function to physically affect the movement of price and price action on our charts. Great episode.
YES! This is the stuff I live for. Market Micromechanics, option orderflow, second order greeks, my GOD this guy know what he's talking about. GREAT guest Riz. Extremely competent and humble. Favourite podcast yet.
This guy is a world class, understanding technical analysis alone can help u, but u won't well without much understanding of the market structure flow and how distribution are made and when likely.
I found this video to be exceptionally insightful and profoundly thought-provoking, as it presents its message in a way that is both engaging and deeply impactful. The creator's ability to communicate such meaningful ideas with clarity, creativity, and a sense of purpose truly resonated with me. I was particularly impressed by the attention to detail and the thoughtful approach taken to ensure the message was not only conveyed effectively but also left a lasting impression. It’s rare to come across content that strikes such a perfect balance between inspiration and practical wisdom, and I genuinely appreciate the effort and passion that went into producing this remarkable piece. This video has not only motivated me to reflect more deeply on its central themes but has also encouraged me to take action in applying its lessons to my own life. 🎉🎉
I found the section on charm, vanna and delta the most informative. Here is how I understand it could be used. Option dealers who sell options want to avoid the risk of unlimited losses so they hedge their positions with delta hedging. If they sell you 100 put options with delta=-0.5 they need to short 50 units of the underlying asset as a hedge. The problem is that delta does not stay constant (i.e. for put options it moves between 0 and -1 and for call options between 0 and 1), so the dealers need to re-adjust the hedge based on how the delta changes. "Charm" measures how delta changes as the option moves towards maturity (the delta of out-of-the-money options basically moves to zero as the time to maturity decreases, while for in-the-money options it moves to 1 for calls and to -1 for puts). "Vanna" measures how delta changes when expected volatility changes (for out-of-the-money options it holds that higher volatility results in higher deltas and lower volatility in lower lower deltas). "Gamma" measures how delta changes when the underlying asset price moves (when price goes up the delta of call options increases and the delta of put options decreases). Knowing this allows you to predict what transactions in the underlying asset option dealers need to make in order to re-hedge their exposure. If they sold 100 put options with delta=-0.5 and hedged them with short 50 units of the underlying and the delta then changes to -0.25, the option dealer needs to buy 25 units of the underlying to re-adjust the hedge (i.e. be 25 units short). Option dealers typically make these transactions at specific times of the day, which allows you to predict how they will move the price by comparing the estimated volume of transactions they need to make with the expected liquidity at that time of the day (i.e. estimating the market impact of these transactions). Example of an actionable idea would be as follows: (1) You observe very high open interest in slightly out-of-the-money options that are close to maturity (2) The market makes a positive overnight move so that the price opens higher with lower implied volatility (3) As the options moved closer to maturity (charm), price moved up (gamma) and volatility decreased (vanna), the delta of the out-of-the-money puts moved closer to zero (from some non-zero negative value), so the option dealers will need to start buying the asset to decrease their short position and thus re-adjust the hedge. (4) As long as the amount of their purchases (which you can approximately calculate) is relatively high compared to the liquidity on that market during that time of the day, you can expect they will push the price up, so you can buy the asset beforehead and speculate on the up move.
I´d never commented before, but this time I´ll give 5Star rating. I´ve no doubt that this guy describe alpha which couldn´t be found somewhere but in this interview. And also thz alot for WOW.🎉
Asslam o Alaikum Brother I really enjoying your Show, but could you please give me the last Traders book name or any contacts info Thanks alot and best of luck, our support is with you
Not at all, he’s being very specific actually just it’s very complexed the concepts that he’s talking about. Specifically he’s talking about expectations, liquidity, statistical probability, the flow of orders between buyers and sellers and macroeconomics.
Yes but there is so much to learn from what he is saying on so many levels. Watch it again and again. Keep in mind that at the end of the day he's a market maker (they have a bro or sis code) and at a very basic level, market makers have to take your money, not give it to you.
Finally a real trader. Cem is the only trader on this channel worth listening to 😂 everyone else is noise. Volatility affects everyone's P&L, options are the underlying not the derivative. Options move markets not technical analysis or any indicators lol this is big boys stuff. Get ready to get humbled all you fake traders/course sellers 😂😂
Is it just me..or in the beginning he basically said....."I'm looking at the options contracts and seeing where the big money needs to go to make their contracts payout......if I know that, I know where the market is going to move before options expiration.....so, I can time it that way."
I'm sorry but yet again there is a lot of woo woo and how amazing is THEIR understanding of the materket but literally zero actionable info helping others do the same.
Not at all, he’s being very specific actually just it’s very complexed the concepts that he’s talking about. Specifically he’s talking about expirations, liquidity, statistical probability, the flow of orders between buyers and sellers and macroeconomics.
Rewatch over and over, research and no doubt that understanding will build! This was a very in depth and complexed discussion so that doesn’t surprise me. I know many will feel similar to you, so I would suggest deep study of this episode 👊
Not at all, he’s being very specific actually just it’s very complexed the concepts that he’s talking about. Specifically he’s talking about expectations, liquidity, statistical probability, the flow of orders between buyers and sellers and macroeconomics. Try watching again and take time to research what he’s saying! Thank you for tuning in 🫡
@@AV24274 Not at all, he’s being very specific actually just it’s very complexed the concepts that he’s talking about. Specifically he’s talking about expectations, liquidity, statistical probability, the flow of orders between buyers and sellers and macroeconomics.
@@wordsofrizdom nothing that you just named is anything that we never heard of. We know what those things are. He didnt give insight on HOW to use these things in your trading
His time is coming finally. Your goal as retail options trader is to be able to visualize how the option chains will change as charm, vanna and gamma change over time as order flows come in and go out throughout the day or week in relation to major MOPEX and VIXEX. You have to practice to view the flows and their impact in multiple dimensions (speed, time, direction). Probably distributions and learning how to bet in layers will be your friend.
Riz helps me l borrowed money to invest and loss the money now I'm in trouble want to pay back my dent unfortunately l lost my job in December please brother help me 🙏
Not at all, he’s being very specific actually just it’s very complexed the concepts that he’s talking about. Specifically he’s talking about expirations, liquidity, statistical probability, the flow of orders between buyers and sellers and macroeconomics.
Cem is someone I have admired for a long time. I’ve been trading for 12 years, full time for 5 and still I’m learning new stuff from Cem. He’s a genius.
Riz we really appreciate you for bringing in the OGs in but have you guys heard of Solomon from 'HEDGING MASTERMIND" RUclips channel? please find the way of putting in the boy. I feel like you are still playing so far
Another great guest Riz! I stood in the same pit as him in the SPX and S&P500 Options. He's not wrong about probabilities. I heard a lot of what Options traders experienced while engaging with the Market on a daily basis. This was very confirming to what I expected about probability and price action. Cem's perspective of the market sensitivities and how he ties it to human behavior is gold
Too much for us normal subscriber 😂😂😂 I can’t believe that’s free to watch now. I do not understand 40% of what he is saying. I am not a native English speaker, so it’s much more difficult to translate in my brain. Many words and concepts I don’t know. Riz with this podcast you set a different line. In a positive way. Thank you.
Hi! I hope you’re doing well! I have been following your podcast, & I really appreciate the value you bring to the trading community and the insights you share with your audience. I’m reaching out to inquire about the qualifications or process for being considered as a guest on your show. Please let me know the best way to move forward or if you need any additional details. Looking forward to hearing from you!
Join the Market Journal community for weekly direct market insights for FREE 👉 www.market-journal.com
Use Code “RIZ10” for 10% Off or Code “WOR” for 20% off 👉 bit.ly/TradeZellaWOR
Use Code "RIZ25" for 25% OFF ALL Challenges 👉 bit.ly/AlphaCapitalWOR
Use Code "RIZ" for 20% OFF ALL Challenges 👉 bit.ly/AlphaFuturesWOR
Free Telegram Community! 👉🏽 t.me/pocketsofrizdom
This has to be one of my favourite episodes of all time. You can just tell by the way Cem speaks and expresses himself, probabilities, Maths and market understanding is deeply ingrained and conceptualised in his brain to the point where its hard for him to translate his brains understandings of his complex and expansive knowledge of the market into english hahaha.
Please Riz, you have to have him on again and try to get more in depth on how options fundamentally drive the market and how options actually function to physically affect the movement of price and price action on our charts. Great episode.
I couldn’t agree more! You have truly understood what’s happening in this episode! I will definitely try my best!
YES! This is the stuff I live for.
Market Micromechanics, option orderflow, second order greeks, my GOD this guy know what he's talking about.
GREAT guest Riz. Extremely competent and humble.
Favourite podcast yet.
Andrea! Thank you for your support. An incredible episode for sure, hope people take the time for the necessary in depth research🫡
Gem podcast....🎉 Basically all your podcast from past 2 months are mind blowing....so much Learning ❤.....thanks 🙏 for your Efforts
This is how i talk when people ask me what I do for a living
😆😆😆
This guy is a world class, understanding technical analysis alone can help u, but u won't well without much understanding of the market structure flow and how distribution are made and when likely.
We need more people talking about binary options
This is free on RUclips 😮 🎉....amazing Learning Podcast ❤
Trend line traders will be lost on this one.
A lot to learn for sure! Many will feel completely lost and that’s OK. I’d suggest to watch several times, take notes & research🙏🏽
@@wordsofrizdomAbsolutely,this is PHD level of understanding. Lol
this guy is great. every word is gold swear down
Glad you enjoyed the episode🙏🏽
One of the best podcasts ive ever scene (and ive scene/heard a few)
Seen*
Thank you Geoff🫡
It is almost impossible to not have a Flash Crash this year. - 5% or more in hours
I found this video to be exceptionally insightful and profoundly thought-provoking, as it presents its message in a way that is both engaging and deeply impactful. The creator's ability to communicate such meaningful ideas with clarity, creativity, and a sense of purpose truly resonated with me. I was particularly impressed by the attention to detail and the thoughtful approach taken to ensure the message was not only conveyed effectively but also left a lasting impression. It’s rare to come across content that strikes such a perfect balance between inspiration and practical wisdom, and I genuinely appreciate the effort and passion that went into producing this remarkable piece. This video has not only motivated me to reflect more deeply on its central themes but has also encouraged me to take action in applying its lessons to my own life. 🎉🎉
Thank you for tuning in! What was your biggest takeaway from the episode?
I found the section on charm, vanna and delta the most informative. Here is how I understand it could be used.
Option dealers who sell options want to avoid the risk of unlimited losses so they hedge their positions with delta hedging.
If they sell you 100 put options with delta=-0.5 they need to short 50 units of the underlying asset as a hedge.
The problem is that delta does not stay constant (i.e. for put options it moves between 0 and -1 and for call options between 0 and 1), so the dealers need to re-adjust the hedge based on how the delta changes.
"Charm" measures how delta changes as the option moves towards maturity (the delta of out-of-the-money options basically moves to zero as the time to maturity decreases, while for in-the-money options it moves to 1 for calls and to -1 for puts).
"Vanna" measures how delta changes when expected volatility changes (for out-of-the-money options it holds that higher volatility results in higher deltas and lower volatility in lower lower deltas).
"Gamma" measures how delta changes when the underlying asset price moves (when price goes up the delta of call options increases and the delta of put options decreases).
Knowing this allows you to predict what transactions in the underlying asset option dealers need to make in order to re-hedge their exposure.
If they sold 100 put options with delta=-0.5 and hedged them with short 50 units of the underlying and the delta then changes to -0.25, the option dealer needs to buy 25 units of the underlying to re-adjust the hedge (i.e. be 25 units short).
Option dealers typically make these transactions at specific times of the day, which allows you to predict how they will move the price by comparing the estimated volume of transactions they need to make with the expected liquidity at that time of the day (i.e. estimating the market impact of these transactions).
Example of an actionable idea would be as follows:
(1) You observe very high open interest in slightly out-of-the-money options that are close to maturity
(2) The market makes a positive overnight move so that the price opens higher with lower implied volatility
(3) As the options moved closer to maturity (charm), price moved up (gamma) and volatility decreased (vanna), the delta of the out-of-the-money puts moved closer to zero (from some non-zero negative value), so the option dealers will need to start buying the asset to decrease their short position and thus re-adjust the hedge.
(4) As long as the amount of their purchases (which you can approximately calculate) is relatively high compared to the liquidity on that market during that time of the day, you can expect they will push the price up, so you can buy the asset beforehead and speculate on the up move.
I want see how Cem structures/visualizes his data over time.
Is he trading spreads?
Riz riz riz 🎉🎉
🫡🫡🫡
I´d never commented before, but this time I´ll give 5Star rating. I´ve no doubt that this guy describe alpha which couldn´t be found somewhere but in this interview. And also thz alot for WOW.🎉
Thank you for tuning in🫡
Is it just me, or does this guy kinda look and speak as Simon Sinek?
Literally what I was thinking the entire interview 🤣 great guy to have as a comparison 🔥
Asslam o Alaikum Brother I really enjoying your Show, but could you please give me the last Traders book name or any contacts info
Thanks alot and best of luck, our support is with you
My god the most boring one yet😂
Great pod!
Thank you brother! Appreciate your support always 👊💙
Agree 100%. Long live Market Micromechanics
❤️❤️❤️❤️
🙏🏽🙏🏽
This guy speaks very broadly. Nothing specific. Condescending body language.
He is just generalizing, almost beating around the bush
Not at all, he’s being very specific actually just it’s very complexed the concepts that he’s talking about. Specifically he’s talking about expectations, liquidity, statistical probability, the flow of orders between buyers and sellers and macroeconomics.
Yes but there is so much to learn from what he is saying on so many levels. Watch it again and again. Keep in mind that at the end of the day he's a market maker (they have a bro or sis code)
and at a very basic level, market makers have to take your money, not give it to you.
@@GeoffGroves I will watch it again
Finally a real trader. Cem is the only trader on this channel worth listening to 😂 everyone else is noise. Volatility affects everyone's P&L, options are the underlying not the derivative. Options move markets not technical analysis or any indicators lol this is big boys stuff. Get ready to get humbled all you fake traders/course sellers 😂😂
nothing interesting 😞
Is it just me..or in the beginning he basically said....."I'm looking at the options contracts and seeing where the big money needs to go to make their contracts payout......if I know that, I know where the market is going to move before options expiration.....so, I can time it that way."
Yes that is what he is saying at a high level. Market makers aren't playing the same game as me and you
Yes that’s the main focus around options and the expiration dates and the flow of orders between buyers
how did you spend little to no time talking to him about macro economics... poor
I'm sorry but yet again there is a lot of woo woo and how amazing is THEIR understanding of the materket but literally zero actionable info helping others do the same.
Not at all, he’s being very specific actually just it’s very complexed the concepts that he’s talking about. Specifically he’s talking about expirations, liquidity, statistical probability, the flow of orders between buyers and sellers and macroeconomics.
@@wordsofrizdom He is being very broad and vague. Definitely not specific - as you can see from the comments.
im sure i gained a lot of wisdom from this video but i cant tell you what it was
Rewatch over and over, research and no doubt that understanding will build! This was a very in depth and complexed discussion so that doesn’t surprise me. I know many will feel similar to you, so I would suggest deep study of this episode 👊
This one deserves a million views. Honestly.
Thank you🙏🏽
Tbh I have no idea what he is talking about and he is trying to hide something lol
Not at all, he’s being very specific actually just it’s very complexed the concepts that he’s talking about. Specifically he’s talking about expectations, liquidity, statistical probability, the flow of orders between buyers and sellers and macroeconomics. Try watching again and take time to research what he’s saying! Thank you for tuning in 🫡
Welcome to Harvard university.
🫡
This guys playing chess, we’re all playing checkers 😅
Literally the best way to describe it! He’s allowing us to see the markets in a whole different way! Thank you for tuning in
@@wordsofrizdomis he though? 😂 what specific actionable information did he actually give
@@AV24274 Not at all, he’s being very specific actually just it’s very complexed the concepts that he’s talking about. Specifically he’s talking about expectations, liquidity, statistical probability, the flow of orders between buyers and sellers and macroeconomics.
@@wordsofrizdom nothing that you just named is anything that we never heard of. We know what those things are. He didnt give insight on HOW to use these things in your trading
@@wordsofrizdomyou asked him very blatantly “what steps can one take….” And he literally didnt answer the question 😂
His time is coming finally.
Your goal as retail options trader is to be able to visualize how the option chains will change as charm, vanna and gamma change over time as order flows come in and go out throughout the day or week in relation to major MOPEX and VIXEX.
You have to practice to view the flows and their impact in multiple dimensions (speed, time, direction). Probably distributions and learning how to bet in layers will be your friend.
Thank you for tuning in.
🇹🇷🇹🇷🇹🇷🇹🇷🇹🇷🇹🇷
Evet!
🫡🫡🫡
Riz helps me l borrowed money to invest and loss the money now I'm in trouble want to pay back my dent unfortunately l lost my job in December please brother help me 🙏
🫡
🫡🫡
Can anyone translate this podcast to Simple Plain English 😂😂😂 💔
Not at all, he’s being very specific actually just it’s very complexed the concepts that he’s talking about. Specifically he’s talking about expirations, liquidity, statistical probability, the flow of orders between buyers and sellers and macroeconomics.
Learned a whole lot of nothing in this one, lol
I would suggest rewatching and doing deep work! I know it’s complexed and in depth but this is a level of trading most will never get access to!
Cem is someone I have admired for a long time. I’ve been trading for 12 years, full time for 5 and still I’m learning new stuff from Cem. He’s a genius.
Couldn’t agree more! Thank you for tuning in and sharing your thoughts 🙏🏽
First viewers
🙏🏽🙏🏽
He looks like ICT tho 😁
Riz we really appreciate you for bringing in the OGs in but have you guys heard of Solomon from 'HEDGING MASTERMIND" RUclips channel? please find the way of putting in the boy. I feel like you are still playing so far
Not sure what you mean with your last comment
I heard the word “Distribution “ ♾️ times today, I guess it is everything we need. 😅
Definitely a key ethos to making predictions and taking positions
Another great guest Riz! I stood in the same pit as him in the SPX and S&P500 Options. He's not wrong about probabilities. I heard a lot of what Options traders experienced while engaging with the Market on a daily basis. This was very confirming to what I expected about probability and price action. Cem's perspective of the market sensitivities and how he ties it to human behavior is gold
Too much for us normal subscriber 😂😂😂 I can’t believe that’s free to watch now. I do not understand 40% of what he is saying. I am not a native English speaker, so it’s much more difficult to translate in my brain. Many words and concepts I don’t know.
Riz with this podcast you set a different line. In a positive way. Thank you.
Thank you! Rewatch as many times as you can, many lessons to take away🙏🏽
Feels like I am listening to Neo from the Matrix...😅😅😅
So much to learn!
You should put 1 more add on the video plz
Haha I did remove as many as possible 😭
😢so sad bro, I hope if didn´t remove its´d be better.@@wordsofrizdom
Am here
As always! Thank you for tuning in!
Damn Bro, you’ve been hitting homeruns past couple months, keep up the good work and thank you 💯
Appreciate the kind words - will do my best🫡
Great learning .lov from india.
I have sent a connection request to you over linkedin
That’s great to hear! Thank you for tuning in 🙏🏽
Cem is 🔥🔥🔥
You’ve got that right! One of the best minds in finance 🔥
Pretty neat approach in modeling what they don't know to complement the options flow :)
That’s right, so much more then just Greeks and technical analysis
Another Banger 🎉. Your podcast has become the best in the industry 100%, Keep it up.
Thank you! That means a lot, we have plenty more to come that’s for sure 🔥
thank you for bringing on PRO Trader
Thank you for tuning in🫡
Cem the legend
🫡🫡🫡
Legend in the house.
🫡🫡🫡
This one looks extra juicy! Thank you🫡
Thank you for tuning in 🫡
Where is the live chat?
What a Legend in the House today
🙏🏽🙏🏽
Hi!
I hope you’re doing well! I have been following your podcast, & I really appreciate the value you bring to the trading community and the insights you share with your audience.
I’m reaching out to inquire about the qualifications or process for being considered as a guest on your show. Please let me know the best way to move forward or if you need any additional details.
Looking forward to hearing from you!
Excellent episode Riz.
I’ll have to watch this a few times to digest all the information🤯👏🏽
Thank you🫡🫡🫡
Best one yet
Thank you! Who would you like to see next🫡
Here we are
🫡
Very complex interview imo but good information thanks for sharing
Complex but value packed! Thank you for tuning in🙏🏽
Cem looking great.
😎😎
❤ thank you great to see Cem 💪
Thank you for tuning in💪🏽
Alright I'll re subscribe. One more twitter hero and I'm gone. Thank for bringing incredible guests (post "verified" statement).
Cem is the best! 💎🥐
🥐🥐🥐
Yep, this one went way over my head but good stuff Riz! 🫡
Thank you! Definitely rewatch and take notes slowly but surely you’ll take on more