Is there a limit to what % of daily volume market makers will buy/sell when hedging positions?

Let's say that a Market Maker has a large options position they need to hedge, but the amount of shares of stock they need to buy/sell is several time the daily volume of the stock.

Is there a rule of thumb for what the max % of daily volume a MM will buy/sell is? Inversely, is there a rule of thumb for how many days it would for a position that's X times the daily volume?

submitted by /u/JirenTheGay
[link] [comments] https://www.reddit.com/r/stocks/comments/13r3dke/is_there_a_limit_to_what_of_daily_volume_market/
Created 2y | May 25, 2023, 2:20:47 AM


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