The Market Impact From Delta Hedging a Huge $10 Billion Options Trade

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This video covers the JPMorgan Hedged Equity fund (JHEQX) quarterly options SPX trade. We'll discuss how the trade results in market makers being long gamma and what it means in terms of delta hedging flows and its implications on the overall market.

Chapters:
0:00 Introduction
0:56 The Strategy Rationale
3:30 Put Spread Collar Strategy
5:03 Current Strategy Strikes
5:55 Options Market-Makers Perspective
6:42 Strategy's Current Exposure
9:27 Positive Gamma and Delta Hedging Flows
11:25 Dealer Positive G