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Jan 9

the set of positions - medium and large players. Delta/Neutral/hedge *Part 2

the set of positions - medium and large players. Delta/Neutral/hedge *Part 22nd day.Close price = 90.20; volatility = 30%; days to maturity = 74. Option price = 5.22. Delta = 0.56. Position delta: 201000.56 - 1200*1 = 1120 - 1200 = -80. The position delta has become negative, now we need to buy 80 shares. We buy 80 shares at 90.20. Current position: bought 20 90-strike call options at 5.6; sold 1160 shares at 90.80; sold 40 shares at 92; bought 80 shares at 90.20; Total number of shares sold:...

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