Convexity, Options Trading, Volatility Trading, Moontower, Option Greeks.
a long call position. Both positions are long 5,000 deltas Stock position Instrument: 5,000 shares P/L: $5,000 per $1 change in stock Call Position Instrument: 100 50% delta calls P/L: $5,000 for the first $1 change in stock Bang! Imagine the stock went to $100. At $100, the stock position is still