However, the market makers are not pricing in the probabilities associated with the 6-4-U market breadth sequence. Basically, the actual probability of profit arguably should be higher but it’s not.

Option market makers, or dealers, who take the other side of the whale’s trade need to constantly adjust their exposure as their risk vacillates with the underlying market’s moves.

That’s because of how options work. A market maker can’t simply hedge an option trade with an underlying stock hedge – and lock in profits – like they can for ETFs.

Citadel Securities is asking the Securities and Exchange Commission to stop a new exchange founded by the stars of Michael ...

For market makers who are managing their options positions, gamma indicates how much they need to adjust their delta hedge when the underlying asset shifts. Essentially, ...

Citadel Securities has submitted a letter to the US Securities and Exchange Commission urging the agency to reject IEX ...

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Jelle Buth, co-founder of market maker Enflux, told Cointelegraph that the loan option model is not unique to the well-known market makers like DWF and Wintermute and that there are other parties ...

Option market makers, or dealers, who take the other side of the whale's trade need to constantly adjust their exposure as their risk vacillates with the underlying market's moves.