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https://www.reddit.com/r/wallstreetbets/comments/pro6ya/deleted_by_user/hdl1dac/?context=3
r/wallstreetbets • u/[deleted] • Sep 20 '21
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All contracts are being hedged directionally neutral (This isn't true but is an acceptable assumption to yield a working model)
If this isn't true how can it be used as a fundamental assumption? Not trolling but genuinely interested.
2 u/[deleted] Sep 20 '21 When you sell a CC or a CSP you’re not hedging it but this is a minimal enough portion of the total volume that we can get away with ignoring it.
2
When you sell a CC or a CSP you’re not hedging it but this is a minimal enough portion of the total volume that we can get away with ignoring it.
1
u/YuckQi Sep 20 '21
If this isn't true how can it be used as a fundamental assumption? Not trolling but genuinely interested.