Convexity, Options Trading, Volatility Trading, Moontower, Option Greeks.
making $5,000 per $1 change. But the call position is now making $10,000 per $1 change. Why? Because the 50 strike is so deep in-in-the-money that the calls now have 100% delta. The calls are now equivalent to a 10,000 share position! (100 calls x 1.00 delta x 100 share multiplier). The call owner