Mark Sebastian: Delta Hedge Dynamics & The Next Move in Oil


In this clip from the March 27, 2023, episode of Money Morning LIVE, options expert Mark Sebastian explains how hedging activity by market makers can contribute to wild swings in asset prices - like the big sell-off in oil futures that rattled commodity markets during mid-March.


Watch the quick Marksplainer below to learn...

  • What "delta" is
  • Why it sometimes sparks big price swings
  • The two different ways delta-driven asset volatility can resolve itself
  • "The biggest fear of a market maker"
  • And if you're just here for Mark's forecast on the next move in oil, jump to about 4:15 in the video:




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