Talking Like Volcker, Channeling Burns (guests: Rob Arnott, Brent Kochuba)
The Market Huddle
00:00
Short Put Options - Is the Market Rallying?
Dealers are short put options, they need to be hedged by selling futures. As time passes, particulars get closer to these big expirations, those put values naturally decay. If the market rallies, goes higher, then there's deltas. Those are positive deltas that puts will lose value. So market makers and dealers can buy futures back because of that.
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