What is Reddit's opinion of Options Trading: The Hidden Reality: Ri$k Doctor Guide to Position Adjustment and Hedging?

From 3.5 billion Reddit comments

These 13 pages are too much for anyone to read in one sitting, but it’s easily the best summary of how market maker options inventory affects market structure and the flow of directional pressures. Please feel free to ask me any follow-up questions on this if you want. I’ve spent a great amount of time going through this article: https://squeezemetrics.com/download/The_Implied_Order_Book.pdf

One thing that article will show is how MMs actually use market orders when under pressure, and need to trade defensively. Likewise, if they really need a structure to fix their books, then they will just get it from the chain; yes, this means another MM or counterparty must fill it.

From what I’ve been able to piece together, all of the literature on market making mechanics and hedging is from options market making. This suggests that shares are not made in the same way, which is backed up by the common sense observation that they would have a disincentive to make the spread for stocks, just to hedge with options which have an even wider spread. This leads me to conclude that most shares are passed around with HFT hot potato, until they find a counterparty who legitimately wants that inventory for their own positioning.

Regarding synthetics, the best work on that is arguably by Charles Cottle, but this is also easily the most difficult non-math-heavy book on options out there: https://smile.amazon.com/Options-Trading-Reality-Position-Adjustment-ebook/dp/B08D4T8T8R/

But that book is arguably too difficult to the point of being inefficient in how wild his thought process is. If you could only have one book on options, it should be “Positional Options Trading” by Euan Sinclair (2020): https://smile.amazon.com/Positional-Option-Trading-Wiley/dp/1119583519/ I’ve read through this book very carefully, to the point of hunting down many of its bibliography items, and I’m happy to discuss anything in it.

Synthetics can be a long conversation. I would encourage you to use OptionStrat, which works great in the free version, either as a web app or mobile app. It will help you to build any strategy, and then you can tinker with its IV, strikes, DTE, shares, and ratios to see what would happen to the Greeks and probabilities. I happen to pay the $15/mo premium, which unlocks chance of profit, OI visualization, and realtime data. But the free version is the best thing out there. I use it all the time just to explore structures and see how they work. I’m a big Tony Zhang fan, but this is far better (and cheaper) than his OptionsPlay platform.

I’m also happy to follow up with any questions on synthetics. Thank you for giving me something to think about with the market maker positioning! Your awards were well deserved.