220: Erik Swanson – Meet the Market Makers on the Other Side of Your Trade
Chat With Traders
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Options Risk Management
The ratio in which your option moves relative to the price of the underlying is called delta. So when we talk about being short and long delta, if you own a call, you have a positive economic exposure. Just as if you were long stock, you are also long delta. Short calls ar short delta. And then if you have put options, which give you the right to sell stock, it's the opposite. Long puts give you short delta, and short puts give you long delta.
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