How Delta and Gamma Hedging Moves Markets

Published on
July 19th, 2021
Duration
15 minutes


How Delta and Gamma Hedging Moves Markets

Investor Tutorials ·
Featuring Jamie McDonald

Published on: July 19th, 2021 • Duration: 15 minutes

It’s no secret that fundamentals are often not responsible for price fluctuations in the market, but that doesn’t mean the technical forces moving markets can’t be understood. In this episode of “Investor Tutorials”, Jamie McDonald explains how market maker hedging of options positions in the form of delta and gamma hedging can have huge effects on the price of the underlying securities those derivatives are based off. This tutorial requires a basic understanding of options markets, and it is recommended that viewers first watch this prior episode exploring that very topic: https://rvtv.io/3ety5pb.