3.3.1 Greeks Overview

This page provides a compact EOD snapshot of the entire options chain for a given ticker over time, showing key position sensitive features and estimates of the impact of the options chain on the value of the underlying stock. Although it is impossible to determine the positions of hundreds of thousands of market participants in the options market, on the other side of those transactions are a handful of market makers who make money on the bid/ask spread of an options quote. In order to minimize their exposure to assignment risk on the options traded with participants, they must buy and sell the underlying stock. This market maker hedging is the mechanism by which trading options move markets (For more insight into the size of the options market see The Tail Wags the Dog).