10 Minute Read

Tackle Today: Gamma & Velocity

February 28, 2022

By | No Comments

Tackle Today: Gamma & Velocity

«Pick a Side.»

Traders, Coach Tyler here.

Tonight’s the main event. Join me on our YouTube channel for an entertaining discussion on the Options Greeks.

As a final message to prepare you, let’s talk about gamma.

Gamma measures the rate of change of delta given a $1 rise in the underlying stock.

Don’t get too caught up in tracking it, though. At a high level, here’s what you need to know. There are two types of positions: positive gamma and negative gamma.

Positive gamma positions are those where your gains accelerate, and losses decelerate. Sounds great, right? It is. Long calls and long puts are both examples of positive gamma trades.

Negative gamma positions are those where your gains decelerate, and losses accelerate. At first blush, it sounds like a terrible characteristic of a trade. Who wants to enter a position where your losses speed up? Were that the only consideration, the answer would be “no one.” Fortunately, negative gamma trades have a redeeming quality that I’ll share tonight.

Naked puts, covered calls, credit spreads, and condors have negative gamma. The fact that they’re super popular suggests the negative gamma must be worth it. And, well, it is. You just have to be careful.

See you tonight!


🛑 Webinar Tonight! Options Greeks for Beginners with Coach Tyler Craig | February 28th, 2022 at 8:30 PM EST on YouTube

Want to really understand what makes an options contract tick? Learn the Greeks. They are the metrics that allow you to measure everything. Join Tackle Trading and get ready for an insightful discussion that will help you take your options trading to the next level.

On this webinar you are going to learn:

✅ What are the Options Greeks?
✅ The two dimensions of Delta
✅ Time Decay and Theta
✅ The role of Gamma
✅ Volatility and Vega

You don’t want to miss it!


Video of the Day: Options Greeks Guide Part 6: What is Gamma (BONUS: FREE Options Greeks Guide)

What is the correlation between Gamma and Delta and how does that impact your trading business? Learn more about this underrated Option Greek in this video. Here are the topics covered:

✅ What is GAMMA?
✅ How Gamma affects Delta
✅ How Gamma Works
✅ How Gamma affects the Option Premium


Access the entire Options Greeks Guide video series

Continue learning about this powerful options trading concept: the Options Greeks. The entire Options Greeks video series can be accessed by clicking on the thumbnails below.


Chart of the Day: FCX Breakout

Chart of the Day: FCX Breakout

Steel, aluminum, copper – everybody was rockin’ on Friday. FCX is a favorite at team tackle, so I’m featuring it as the chart of the day. A breakout over long-term resistance appears imminent.


Today’s line up

S.T.E.P. MasterMind Group 8:30 PM EST

In these MasterMind Groups, you will learn directly from our experienced coaches exactly how to apply the S.T.E.P. Swing Trading System discipline in the current market conditions.

Weekend Reports

Watch the Stock, Options, Commodity, and Forex Reports to help you prepare for the week.


Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.


Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Chart Modal

Tackle Trading

Book a FREE Consultation

Sign up for a free consultation to build your Educational Plan.