Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

Delta hedging comes into play when option writers erred and are now under water, it thus causes a movement of the stock in the direction of the error, if calls are under water, the stock goes up, if puts are under water the stocks go down (all that if delta hedging is forced on naked writers). Don't feel bad about them, they can take easily two out of ten cycles going against them, they win the other 8 cycles hand down....