$SPY @Volatility888 @holdingbags @Level4 Hedgegeddon. “The market ‘gets’ the Dealer ‘short Gamma’ dynamic in mega-cap, single-names with very large open interest outstanding,” Charlie [McElligott wrote], in a morning note. He flags large October expiries from “those” August calls and call spreads in Amazon, Adobe, Google, and Netflix. We’re “in the process of self-fulfilling near or even through the strikes which the Dealer(s) is/are short and thus forced to aggressively Delta hedge,” he wrote “These options are now very much ‘in play’,” [Charlie] remarked, before noting that “the Delta on the calls is going to explode higher if the rally further extends,” which sets the stage for more forced buying to hedge. heisenbergreport.com/2020/1...
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