prophylaxis6
prophylaxis6 t1_iy8sey5 wrote
Reply to comment by hardyrekshin in 2022-11-29 Wrinkle-brain Plays (Mathematically derived options plays) by hardyrekshin
Wow, this is all a lot to wrap my smooth brain around. I'm highly regarded.
I think I'm getting the basics, but I have many questions still. Maybe I can start with this:
Gamma Max... If the underlying price of the stock goes above the gamma max the MMs hate it because they have to hedge more than they would like to because there is an increased possibility of the price fluctuating outside of their guaranteed returns, so when that happens they have to sell additional shares? This provides you or me with an opportunity to purchase options more likely to swing in our favor, or is it not that simple?
Apologies for the rudimentary questions. Again, I'm highly regarded
prophylaxis6 t1_iy8g90o wrote
I’m new to this… what’s Sharpe Ratio? Also to be clear you’re saying these plays would only be good as of the day you posted?
prophylaxis6 t1_iyal4tb wrote
Reply to comment by hardyrekshin in 2022-11-29 Wrinkle-brain Plays (Mathematically derived options plays) by hardyrekshin
Do you have any readings or videos you could refer to me to learn more?