“From just the $80k strike for example, we can see an estimated just under 20BTC needs to be sold for every $100 move higher in BTC”
It’s written that 20 BTC needs to be sold, but isn’t it the other way around (meaning that if the price goes up, market makers need to buy Bitcoin to hedge their positions)?
It's positive gamma, so market makers trade against price -> reduce volatility. So as price rises, in a positive gamma scenario, market makers trade against price by selling BTC.
“From just the $80k strike for example, we can see an estimated just under 20BTC needs to be sold for every $100 move higher in BTC”
It’s written that 20 BTC needs to be sold, but isn’t it the other way around (meaning that if the price goes up, market makers need to buy Bitcoin to hedge their positions)?
It's positive gamma, so market makers trade against price -> reduce volatility. So as price rises, in a positive gamma scenario, market makers trade against price by selling BTC.