In this clip from Hedgeye’s 9th Semiannual Investing Summit, Mike Green (Portfolio Manager at Simplify Asset Management) discusses how larger firms delta-hedge meme stocks and how retail investors react to it with Hedgeye CEO Keith McCullough.

“When a series of call options move into the money—for example a meme-stock has risen significantly—you will see that Susquehanna or Citadel become large holders of the equity of these companies. Why is that happening? Because they are delta-hedging their exposure. It has nothing to do with them validating it. It’s just market making operations.”

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Mike Green: Larger Players Delta-Hedge Meme Stocks - HIS Guest Lineup