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A comment on SoftBank unmasked as ‘Nasdaq whale’ that stoked tech rally. Parent comment

Re:SoftBank unmasked as ‘Nasdaq whale’ that stoked tech rally by encoderer on Friday September 04, 2020 @01:52PM (#24377252)
The concept of notional value is more complicated than that. Dealers don’t hedge the full notional value they hedge only enough to cover the delta and gamma on the option.
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Re:SoftBank unmasked as ‘Nasdaq whale’ that stoked tech rally by mightytravels on Friday September 04, 2020 @02:12PM (#24377457)
True but at the current high implied volatility of the affected symbols the delta/ gamma has been high —> lots of hedging needed. Big loop.
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Re:SoftBank unmasked as ‘Nasdaq whale’ that stoked tech rally by arcticbull on Friday September 04, 2020 @05:49PM (#24379222)
Correct, but not 100:1 hedging.
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Re:SoftBank unmasked as ‘Nasdaq whale’ that stoked tech rally by rocho on Tuesday September 08, 2020 @03:32AM (#24406029)
In addition to that, they match orders in real-time, so they might not even need to hedge partially because they have offsetting positions coming in.
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