The Barchart Technical Opinion rating is a 100% Buy with a Strengthening short term outlook on maintaining the current direction. An application has been made to remove Galaxy from the official list of ASX, which is expected to take effect on and from Thursday, 26 August 2021. “I would especially like to thank John Gibson who has been a member of the Board for more than 11 years and has overseen the extraordinary achievements of the company,” Mr Hubbard said. Orocobre Deputy Chairman Rob Hubbard said that he welcomed Mr Rowley, Ms Heredia, Mr Turner and Mr Fitzpatrick to the Orocobre Board and looked forward to working with them. He also said, “that each of the retiring directors has made unique and valuable contributions throughout the Orocobre journey that has led to today’s merger. Rob Hubbard will continue as the Deputy Chairman and Richard Seville, Fernando Oris de Roa and Leanne Heywood will continue in their current roles as Non-Executive Directors.
- As options approach expiration, gamma exposure can change dramatically and affect pricing and volatility noticeably.
- Its flagship project is the Sal de Vida project located in Catamarca province, Argentina.
- GEX shows how much leveraged directional exposure exists across all strikes and expirations.
- A gamma of 0.05 means a 1% move in the underlying price will impact options prices by 5%.
- Rising lithium prices mean acceleration of new lithium projects looks set to be the biggest outcome of a $4 billion merger between Orocobre and Galaxy Resources.
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The company was incorporated in 1996 and is headquartered in Perth, Australia. The company is a joint venture partner with Ganfeng in the Goulamina hard rock lithium project in the south of Mali. Markets coverage, company profiles and industry insights from Australia’s best business journalists – all collated and delivered straight to your inbox every day. The ASX lithium sector has seen some takeover activity in the past year as companies seek economies of scale and project synergies in order to get positioned for the next boom.
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All formed stable triple-helices, with their melting temperature depending on the identity of the guest triplet. The new company will have an industry-leading growth profile and an enhanced financial position to optimise and accelerate development of its lithium assets. Monitoring the gamma positioning and flip point can give key insights into potential future volatility. The new board of the merged company will have four independent directors from Orocobre and four from Galaxy Resources and Orocobre’s current chief executive. The merger will unlock significant synergies for the merged company, create a diversified production base, and realise significant value for shareholders, said the companies.
The driving ambition behind a $4b lithium merger
– A negative to positive flip could mean a squeeze up as market makers hedge. – Danger zones are areas where gamma flips from positive to negative or vice versa. A gamma of 0.05 means a 1% move in the underlying price will impact options prices by 5%. Not a Trading System – Besides oversimplification, GEX is not a standalone trading system. It is a source of market data that can be used to inform trading decisions, but relying solely on GEX to trade could be problematic.
Participation in the merger will provide significant benefits to Galaxy Resources shareholders in being part of a larger diversified group and help to advance its projects’ development. “This transaction has the potential to be a significant value-creating opportunity for Galaxy and Orocobre shareholders,” said Galaxy Resources chairman, Martin Rowley, the new company’s non-executive chairman. This https://www.1investing.in/ is because high gamma means options are more sensitive to changes in the underlying asset price. As gamma exposure increases, it can correlate with increased market volatility. A short or negative gamma position typically occurs when a trader sells or writes options. GEX is calculated by taking the change in the total delta exposure for a 1% hypothetical move up and down in the underlying price.
This Greek measures the time decay value of delta, so how much delta will change as time passes and the price stays stagnant. Vanna measures the rate of change of delta relative to changes in the underlying price. This area, known as the gamma flip point, indicates the price where volatility expansion may turn into volatility contraction.
To really help stay ahead of the curve on gamma and its uses, traders should look to quantitative and academic papers for the most cutting-edge research. Conversely to the long gamma trade above, as volatility decreases, so do the odds of a contract ending up in the money; this eats away at the premium and benefits an option writer. Connect and share knowledge within a single location that is structured and easy to search. Strong demand from customers is allowing the miner to lower the grade of its lithium exports and maybe sell its waste rock.
Martin Perez de Solay will continue in the role of Managing Director and CEO.
Both Hubbard and Rowley are to step down from their roles as chairman and deputy chairman of the new company one year after the merger is implemented in August this year. The boards of the two companies have signed a binding Merger Implementation Deed whereby Orocobre will acquire 100 per cent of the shares of Galaxy Resources. This is because there are fewer days left for the underlying price to potentially move, so delta changes happen faster per unit of price change.
To see all exchange delays and terms of use please see Barchart’s disclaimer. The Australian lithium sector’s time in the sun has arrived, as softening prices, sovereign risk in rival nations and US subsidies how to calculate marginal cost trigger a wave of deals. A new name has yet to be selected for the new merged company which will have its head office in Buenos Aires, Argentina, and a corporate headquarters on Australia’s east coast.
GEX shows how much leveraged directional exposure exists across all strikes and expirations. The higher the GEX value, the more sensitive the options are to rapid price movements. Delta exposure represents the option market’s directional exposure to the underlying asset. Stack Exchange network consists of 183 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.
Oversimplification – Retail traders run the risk of oversimplification of this metric. However, it does not show the nuanced details of specific strikes and expirations. This makes it difficult to stay up to date on exactly what is happening in the live market. The nonrandom frequency of Gly-X-Y triplets makes it practical to experimentally approach the stability of much of the collagen sequence through the study of a limited set of host-guest peptides. In these peptides, individual Gly-X-Y triplets constitute the guest, while the host consists of Gly-Pro-Hyp tripeptides. A set of host-guest peptides was designed to contain the most common nonpolar and charged triplets found in collagen.
The companies have a complementary portfolio of brine and hard rock lithium assets spread across Australia and Argentina and a vertically-integrated supply chain. “The logic of this merger is compelling,” said Orocobre chairman, Robert Hubbard, who becomes deputy chairman of the new merged company. Gamma charts visualize the aggregate gamma exposure for an index or stock over time. They allow traders to quickly identify areas where gamma is increasing or decreasing. While it is becoming easier for retail traders and investors to utilize gamma in their trading, it also means that the edge is slowly (or not so slowly) disappearing as its use becomes normalized and accepted by everyday investors. Smaller price movements can trigger larger reactions from options, leading to bigger swings in the overall markets due to dealer/market maker adjusting.