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.
No comments:
Post a Comment