Oil price moves aren't random, and sharp reversals and stalls are often driven by options positioning and mechanical hedging ...

The CBOE Volatility Index has been steadily decreasing throughout the year, indicating lower market uncertainty and steady price appreciation in equities. In addition to the low volatility levels, ...

Now we know that market makers hedge and re-hedge their options positions in the underlying market for their near-to-expiry contracts, the next question is “what impact does all that have on the ...

Bank of America recently estimated that the effect of delta hedging by option market makers has artificially reduced S&P 500 index volatility by 2.7 points over the past month (a 21% fall in ...