Tech Sell Off - Are Options Amplifying Market Movements?

The tech sell off means that after a great run in 2020 US technology stocks have had a bit of a setback. Some people are saying that we are about to experience higher volatility in tech stocks because of large call option positions. In this video we look at how this mechanism works.

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Charpters with thanks to Complex
00:00 Introduction
00:24 last week returns Apple, Tesla, NASDAQ
01:06 last year returns
01:38 FT on SoftBank and call options
02:07 Call Options
02:53 call options on Apple
05:21 on the other side of the trade, market-makers
06:50 delta hedging
08:10 negative gamma
08:25 market movements amplified
08:30 FT on SoftBank again
09:30 market volatility

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