short call and gamma long

ba736

in short call and short put, is delta all <0, in short call, gamma>0?

if I short call and long stock, when stock increases, delta increases, do I need to buy less stock to do delta hedging?

chaojimali

The delta of a call option should be the same whether you are long or short. If delta increases you would need less options to hedge your stock since a 1% increase in the stock will cause a greater change in the call then before.

genuinecfa

yes gamma should be the same with a long or short

FinancialAnaly

I don't agree

Analyze_This

go on.....

President1988

I think short put gamma is <0, my opinion only, correct me if wrong

yalo

Gamma is greatest at when a call or put is at the money, the further the price moves from the exercise price. I don't think there is a difference between a short or long put gammas, just like delta of a short or long call is the same. Now, value and its effect would change depending on if your long or short the assest / long or short the call / long or short the put

bingbingliang

The delta of a call can range from 0.00 to 1.00; the delta of a put can range from 0.00 to –1.00. Long calls have positive delta; short calls have negative delta. Long puts have negative delta; short puts have positive delta.

Long calls and long puts both always have positive gamma. Short calls and short puts both always have negative gamma.

Pegasus2008

short call my opninon is positive delta, if short call , stock price increase, delta should increase, in your case, absolute value of delta reduce

tianxin

short call is negative delta, if stock goes up value of short call goes down, hence delta is negative