Convexity, Options Trading, Volatility Trading, Moontower, Option Greeks.
P/L with respect to the stock. This allows us to generalize any exposure into a slope. Example of a typical call overwriter: You own 3,000 shares of stock = long 3,000 deltas. You are short 30 20% delta calls (equivalent of 600 shares) = short 600 deltas Net delta: Long 2,400. This represents the