Options Vanna Delta Charm: How it Moves Markets | SpotGamma
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- Опубликовано: 4 окт 2024
- Brent, Founder of SpotGamma dives into options Vanna, Charm and how Delta changes for a change in Implied Volatility. How do market makers adjust hedges for implied volatility moves? We explain how that may have been why the market rallied over 2% in recent days.
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Thank you so much Brent for such a wonderful explanation of Vana and Charm with an example. I have been searching for something like this and never found one. Much appreciated 🙏🙏💯💯💪💪
sweet, glad to hear it helped explained things!
Great visual explanation on how Vana and Gamma work, but how do you use Vana to find trade setups or possible trade opportunities?
Your content is the best, so clear and actionable. Subscription is a bargain.
appreciate it peter, thanks.
You could have made the graph larger. Good one though ...
thanks. will keep in mind for next time.
Wow - just beginning options seriously
Excellent informative video. Thanks for sharing the knowledge . Really appreciate it.
Very useful and perfectly explained 🔝
thank you sir
Fantastic as always
Very clear explanation. Thank you, sir!
appreciate it!
Awesome video. Thanks! Can you share some of the reasons for IV to go down or Up?
Great explanation
Thankyou so much!
Thank you Brent, love the content. In your explanation of Charm, I assume call options would have the reverse effect? Time decay causes gradual shift lower in the market (all other factors being the same)?
Stonks always go up, got it.
apparently that’s the case 😬
How do you anticipate or know if vanna rally is going to happen and for how long?
we produce charts that outline this for subs - but in general watch 1 month realized vs VIX to see if vanna is supportive.
Tienes videos en español?
Hey what is the song at the end of the video? I've heard it before on a meditation video and have been searching it for it since.
Notification crew
New to the channel. Any way you can make a separate video on the VIX/16 rule and all the intricacies of that thought? Thanks in advance
Hi Juan. Thanks. We have a free 30 years in 30 minutes options education teaser on our site under free resources. Based on good questions like this one, we have developed a comprehensive 3-part educational series which will launch this Monday, Dec 13th. It is six hours of paid educational training that will answer your VIX question and a lot of other core concepts. You can join our free newsletter to follow the launch and then get access, if helpful, by signing up at www.SpotGamma.com
There is not that much intricacy to it. There are 252 trading days in a year, and the square root of that is roughly 16. To understand why you need to do that, look at tutorials on how to calculate daily expected moves based on VIX, or better yet read the CBOE VIX white paper. Or see the reference Brent mentioned, as SG has great info!
nice video opening music
LOL thank you, trying to up our game over here
Great info.. thank you. What about also the large # of CALL OI also at at 4600 strike - if prices stay below 4600 at OPEX won't the dealer unwind of their corresponding longs used to hedge their negative delta exposure from selling all those CALLS pressure the market lower?
if those positions are long calls (dealers short) then yes, id agree with that idea.
@@spotgamma If those call OI are not from dealers' being short them who else could be short these Calls? I didn't think retail were in the business of selling options as they are usually not that sophisticated and don't generate sufficient volume... or is it some other group?
i admitted my wrongness and your correctness from the last video. Market is still a scam though!! haha
its all good fun I was just playing around.
solid gong
gotta get zen'd out before i launch off :)
So at large 4700 Put expiry 12/17....if SPX is below 4700 and delta goes to 1 MM is forced to sell stock to stay neutral? on the flip side if SPX is above 4700 and those put deltas go to zero MM is gonna buy stock? Another awesome video Brent.
thanks! if dealers are short the put and market goes over 4700 they buy back stock as market goes up. don't forget though that they are likely long calls vs short stock. so the reality is positions may be netting out.
What happens when the there's a feedback loop but with the exact opposite
Feedback loops work both ways in my view. The loops often break at options expiration.
Compounding effect = short squeeze
Alguien sabe cómo puedo traducir el video al español?
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