For the first time since September, oil algo signals have turned bullish. The geopolitical tension around Iran rhetoric appears to have triggered initial momentum, but what's really pushing things now is the options market mechanics—delta hedging flows are creating a self-reinforcing cycle that's sending crude valuations well beyond what fundamentals would justify. When options traders adjust their hedges, it amplifies the price move, which then forces further adjustments. It's a classic feedback loop in the derivatives space. Brent crude has been particularly sensitive to these algorithmic and options-driven swings, making it worth watching how long this reflexive push can sustain before the market recalibrates to fair value.
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BearMarketLightning
· 01-14 22:10
Here we go again, the self-reinforcing cycle of options, to put it simply, is just a bunch of traders stepping on each other.
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FloorPriceNightmare
· 01-14 18:13
Delta hedging is back, tired of this routine...
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GasDevourer
· 01-14 18:13
This wave of oil price increase is purely a game of options hedging passing the buck... It will break eventually.
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SigmaBrain
· 01-14 18:01
The delta hedging game is back again. How long can they keep bragging this time?
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Degentleman
· 01-14 18:00
This is a typical derivatives casino. The delta hedging strategy, to put it simply, is a self-reinforcing game of passing the parcel.
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NFTRegretter
· 01-14 17:50
Algorithm frenzy, ultimately needs to settle the debt
For the first time since September, oil algo signals have turned bullish. The geopolitical tension around Iran rhetoric appears to have triggered initial momentum, but what's really pushing things now is the options market mechanics—delta hedging flows are creating a self-reinforcing cycle that's sending crude valuations well beyond what fundamentals would justify. When options traders adjust their hedges, it amplifies the price move, which then forces further adjustments. It's a classic feedback loop in the derivatives space. Brent crude has been particularly sensitive to these algorithmic and options-driven swings, making it worth watching how long this reflexive push can sustain before the market recalibrates to fair value.