NVDA HITS $1,000,000,000,000
Pirates of Finance
00:00
The Dangers of Delta Hedging Options
I think the general point is like if you could frictionlessly delta hedge the option, the option value changes because of the implied ball. You have to know what you're buying and what price you're paying. And then vice versa too. Like I know when people that made money off of S&P calls in Q1 or 2020, because like implied ball expanded so much. So it's a dangerous game to play as we saw in the meme stock era.
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