Options Vanna Delta Charm: How it Moves Markets | SpotGamma

Brent, Founder of SpotGamma dives into options Vanna, Charm and how Delta changes for a change in Implied Volatility. How do market makers adjust hedges for implied volatility moves? We explain how that may have been why the market rallied over 2% in recent days.

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Here at SpotGamma we use the options market to forecast the stock market. Knowing the drivers behind market movement is key to establishing, managing or exiting positions. We provide actionable daily options flow data to traders and investors.

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*Note: This presentation is intended for general information and entertainment purposes only. No mention of company names, trading strategies or illustrative examples constitute investment advice. SpotGamma advises you to seek investment advice from a licensed professional.

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[chawlavinay]

Thank you so much Brent for such a wonderful explanation of Vana and Charm with an example. I have been searching for something like this and never found one. Much appreciated 🙏🙏💯💯💪💪

[Giggidygiggidy]

Great visual explanation on how Vana and Gamma work, but how do you use Vana to find trade setups or possible trade opportunities?

[PeteBristolUK]

Your content is the best, so clear and actionable. Subscription is a bargain.

[flattackfirefly]

Excellent informative video. Thanks for sharing the knowledge . Really appreciate it.

[adamtawakol]

Thank you Brent, love the content. In your explanation of Charm, I assume call options would have the reverse effect? Time decay causes gradual shift lower in the market (all other factors being the same)?

[themowgli]

You could have made the graph larger. Good one though ...

[chasewinter]

How do you anticipate or know if vanna rally is going to happen and for how long?

[JDMable]

Wow - just beginning options seriously

[navinsai]

Awesome video. Thanks! Can you share some of the reasons for IV to go down or Up?

[tigerzero]

Hey what is the song at the end of the video? I've heard it before on a meditation video and have been searching it for it since.

[alexb.]

Very clear explanation. Thank you, sir!

[NWKastaways]

New to the channel. Any way you can make a separate video on the VIX/16 rule and all the intricacies of that thought? Thanks in advance

[roletnabih]

So at large 4700 Put expiry 12/17....if SPX is below 4700 and delta goes to 1 MM is forced to sell stock to stay neutral? on the flip side if SPX is above 4700 and those put deltas go to zero MM is gonna buy stock? Another awesome video Brent.

[bwguest]

Great info.. thank you. What about also the large # of CALL OI also at at 4600 strike - if prices stay below 4600 at OPEX won't the dealer unwind of their corresponding longs used to hedge their negative delta exposure from selling all those CALLS pressure the market lower?

[olvinfuentes]

What happens when the there's a feedback loop but with the exact opposite

[joeyclutch]

i admitted my wrongness and your correctness from the last video. Market is still a scam though!! haha

[hectorgonzalez]

Alguien sabe cómo puedo traducir el video al español?