Gamma | Options Trading Concepts



Gamma is the rate of change of an option's delta, given a $1.00 move in the underlying. In other words, this is the acceleration of an option's delta. Our main concern with gamma is the risk it can carry as we approach expiration. Mike breaks down an example in this segment, and explains why we look to close or roll our trades before we get to this point! New to options trading? Mike breaks down trading strategies and concepts in a visual way for beginner to intermediate investors. Click the link below to learn more: http://ow.ly/XROgU Follow: @doughTraderMike Use the hashtag #whiteboard to discover more options trading concepts! ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advanced investment strategies, tastytrade has a broad spectrum of content for viewers of all kinds! Tune in and learn how to trade options successfully and make the most of your investments! Watch tastytrade LIVE daily Monday-Friday 7am-3:30pmCT: http://ow.ly/EbzUU Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1 Follow tastytrade: Twitter: https://twitter.com/tastytrade Facebook: https://www.facebook.com/tastytrade LinkedIn: http://www.linkedin.com/company/tastytrade Instagram: http://instagram.com/tastytrade Pinterest: http://www.pinterest.com/tastytrade/

Comments

  1. Very well explained. Thank you!
  2. @8:01 option price should be 0.15 instead of 0.4?!
  3. thank you, much help!!!
  4. did he say, "without further to do..."?
  5. not a bad looking guy
  6. @tastytrade When the delta is .5 wouldn't the option's price decrease to 2.4 rather than 2.45?
  7. Dont you want high gamma when you are trying to get lets say a 20 cent increase so you maximize profit especially with a small account
  8. Just saying : 1st time seeing Mike wearing T-shirt and I just realize that he is so muscular.
  9. This was great! Thanks!


Additional Information:

Visibility: 9226

Duration: 13m 54s

Rating: 80