How option dealers are buying/selling the stock

When you buy a call you're positive Delta (+Δ).

This is what it looks like (IMG 1).

Theoretical value is unlimited when it favors your side🟢

But what happens on the other side?

Well the MM has to sell you that contract, putting them in negative Delta (-Δ)

So, if the position goes against them, they're losing money🩸

MM are not about picking sides ⚖️

They're job is to stay delta neutral 📈

To do so, they buy the underlying security based off the Delta of the contract.

e.g IMG 2.

So if their bearish position goes against them, the shares will offset the loss.

The keyword is "buy the underlying security" 🤑

MM/dealers are influencing the market by buying or selling the underlying security.

This is why learning options matter.

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