Video Library

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.

Recommended Videos

Introducing the Greeks: Your Options Dashboard

Introducing the Greeks: Your Options Dashboard

Learn how Delta, Gamma, Theta and Vega each map to a component of a car's dashboard — speed, acceleration, fuel and weather — and why tracking all four is essential to understanding what drives an option's price.

Watch Now
Netting the Greeks

Netting the Greeks

"When we turn a short option into a spread, we are reducing our profits, but we're also reducing our losses." Learn the significance of the Greeks in this hypothetical scenario.

Watch Now
The Effects of the Greeks

The Effects of the Greeks

Explore how changes in Theta and Vega affect this options strategy.

Watch Now
Selling the Greeks

Selling the Greeks

Learn how investors might use the Greeks to understand theoretical changes in option's prices.

Watch Now
Understanding the Option Greeks

Understanding the Option Greeks

Tune in for an overview of Delta, Gamma, Theta, Vega and Rho.

Watch Now
The Greeks: Theta, Vega and Rho

The Greeks: Theta, Vega and Rho

This rebroadcast from the OIC webinar program will explain in detail the Greeks: Theta, Vega and Rho, and how each of them influence option prices.

Watch Now