Thursday, February 27, 2025

nvidia stock delta exposure

 AI Overview

Nvidia's (NVDA) delta exposure (DEX) is an estimate of the dollar value of shares that market makers need to hedge for every 1% change in the price of Nvidia stock. 
How is delta exposure calculated? 
  • Delta exposure is based on the delta of an option, which measures how the price of an option changes in relation to the price of the underlying stock.
  • Market makers use delta hedging to maintain neutral market exposure.
  • When dealers have a positive delta exposure, they must sell the underlying stock to maintain neutrality.
  • When dealers have a negative delta exposure, they must buy the underlying stock to maintain neutrality.
How can I view Nvidia's delta exposure?
  • You can view Nvidia's delta exposure on OptionCharts.io. 
  • You can also view Nvidia's option chain, which includes delta, gamma, and other information, on Nasdaq.com. 
What does delta exposure indicate? 
  • The magnitude of the delta exposure indicates the strength of the potential buying or selling pressure on the stock.

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