Robinhood Option Traders vs. The Softbank Whale


Manage episode 272440584 series 2426951
By Derek Moore. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Jay Pestrichelli co-hosts this episode with Derek where they discuss the continued talk around Robinhood Traders buying deep out of the money options to force market makers to buy stock. Plus, they discuss the reported $4 Billion spent buy Softbank to purchase option positions in some tech names. How do market makers hedge and the challenges with short term deep out of the money call option buying? Plus, why they both hate and love the idea of covered calls.

Robinhood Option Traders buying cheap deep out of the money call options

Does call buying really force market makers to buy up a lot of shares?

Examining option delta and time decay on short term Tesla call options

How the market sometimes makes you pay a tuition as you acquire trading knowledge

One of the best trading books Market Wizards by Jack Schwager

Examining the reported Softbank option spread positions

Why covered calls sometimes are detrimental to a portfolio

How often the overall market is up more than 15% in a year historically

What does option delta mean?

How does an options delta factor into how a market maker hedges?

Mentioned in this Episode:

Derek Moore’s book Broken Pie Chart

Jay Pestrichelli’s book Buy and Hedge

Derek Moore and Jay Pestrichelli White Paper on Concentrated Stock Hedging download here

Market Wizards by Jack Schwager

Stock Market Wizards by Jack Schwager

(New Book) Unknown Market Wizards by Jack Schwager

Contact Derek

95 episodes