How Market Makers Use Delta to Manage Risk

An introduction to factors professional traders consider when balancing their portfolios. Learn why they may focus on volatility rather than simply guessing if a stock goes up or down.

0:11 Market Maker Myths and Reality
0:32 Market Makers Don't Trade Strategies
0:50 Market Makers vs. Retail: Different Goals
1:22 Different Trading Styles Create Efficiency
1:59 Delta Before Hedging
3:51 Why Trade Delta Neutral?
4:00 Capturing Volatility
4:14 Market Makers Trade Volatility, Not Price

Register to view the complete Advanced Greeks: Core Drivers of Option Pricing and Strategic Decision-Making webinar: https://bit.ly/4bXt5X4.