This is an article to be read and re-read. Thank you Yam for going into such great detail. You are teaching to fish for ourselves and there is no greater gift :)
Thank you for the great recent additions to this explainer covering the OD graphical modules.
One thing needs correcting (I think) :
In the OD 'Dealer Net Positions' section the following section seems the wrong way around :
"MM Short Options (regardless of contract type): When customers have positive net options positions, market makers have a negative position, resulting in negative gamma exposure. They need to hedge by selling as the price increases and buying as the price decreases, amplifying market movements."
(I think) it should be saying that in MM short Gamma environment MMs have to _sell_ as the spot decreases, and _buy_ as the spot increasses ?
Hi Yamco, is the pro subscription on convexvalue necessary to see all the charts you make? Just curious if we can get away with the $100/month live subscription.
Excellent job on this and for the updates, love it!
Let me know if there’s something missing!
This is an article to be read and re-read. Thank you Yam for going into such great detail. You are teaching to fish for ourselves and there is no greater gift :)
Hi Yamco
Thank you for the great recent additions to this explainer covering the OD graphical modules.
One thing needs correcting (I think) :
In the OD 'Dealer Net Positions' section the following section seems the wrong way around :
"MM Short Options (regardless of contract type): When customers have positive net options positions, market makers have a negative position, resulting in negative gamma exposure. They need to hedge by selling as the price increases and buying as the price decreases, amplifying market movements."
(I think) it should be saying that in MM short Gamma environment MMs have to _sell_ as the spot decreases, and _buy_ as the spot increasses ?
No hate/trolling, just trying to help :)
Hi Yamco, is the pro subscription on convexvalue necessary to see all the charts you make? Just curious if we can get away with the $100/month live subscription.
I just use the 100$
The pro is for futures data so ZB, ZN, ES, BTC, NQ
great article, thank you. it'd be great to see the mechanical bounces in another education article.
I’ll write this at the bottom of the article in the coming days. Would like to keep all the positioning style trading/information stuff in one place.