Tackle Today: Gamma & Velocity
February 28, 2022
«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.
Options Greeks Guide Part 1: What Are Options Greeks
What are the Options Greeks and how can you utilize them in your trading routine in order to perform better in the market? This is what you will be learning in this video series.
Options Greeks Guide Part 2: What Is The Black-Scholes Model
What is the Black-Scholes Model and how to use it in your trading? This is what this video will cover.
Options Greeks Guide Part 3: What Is Delta
Delta is the most famous options Greek. Come learn what Delta is and how it can help you become a better trader.
Options Greeks Guide Part 4: What Is Theta
To professional traders, Theta means CASH FLOW and PASSIVE INCOME. Come learn more about this powerful option Greek and how it can benefit your trading skills.
Options Greeks Guide Part 5: What Is Vega
How does Vega work? What is the correlation between Vega and volatility? How does it affect options premium? That is what you will learn in this video.
Options Greeks Guide Part 6: What Is Gamma
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.
Options Greeks Guide Part 7: What Is Rho
What is Rho? How does Rho affect options premium? This is what you will learn in the latest episode of this Options Greeks video series.
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
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