All articles tagged with #gamma hedging
GLJ Research’s Gordon Johnson reiterates a Sell on Tesla (TSLA) with a $25.28 target, arguing 2026 ends the stock’s long-running options tailwind and TSLA faces a fundamental reset with sharp downside; he notes fading gamma hedging as evidence past gains were driven by option activity. TipRanks shows a Hold consensus with a $393.97 target (~14.8% upside), while TSLA is down about 23.7% year-to-date.
Standard Chartered analysts warn that the recent oil price crash has been exacerbated by gamma hedging effects, with banks selling oil to manage their side of options as prices fall through the strike prices of oil producer put options and volatility increases. However, experts believe that the selloff is overdone and oil prices will recover as the global oil surplus dissipates. The banking crisis is not viewed as systemic or likely to unravel on a wider scale, and the broader market remains in a bullish mood.