prophylaxis6

prophylaxis6 t1_iy8sey5 wrote

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

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