Learn why it's important to manage your winning trades due to the increased gamma and delta risk as expiration approaches! See the latest tastytrade videos: http://bit.ly/ZoitcZ As premium a seller, it is very important to manage your positions as expiration approaches. Options that are at the money will see a large increase in gamma risk. This is important to be aware of because a smaller move in the underlying will have a large effect for this options. Due to this increased risk, we will rarely hold a trade until expiration, instead looking to manage a winning trade or roll in order to extend duration. Today, tastytrade's Tom Sosnoff and Tony Battista break down the relationship for at the money options and two of the Greeks, delta and gamma. The guys illustrate how at the money options will have a higher delta and gamma than further out of the money or in the money options. This increased risk is one of the main reasons that we look to close or roll our positions as expiration approaches! ======== 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. Tune in and learn how to trade options successfully and make the most of your investments! http://goo.gl/EaF69C Subscribe to our YouTube channel: http://goo.gl/Szl24S Watch tastytrade LIVE daily Monday-Friday 7am-3pmCT: http://goo.gl/EaF69C Download our mobile app, Bob the Trader: http://goo.gl/zgIyco Follow tastytrade on Twitter: https://twitter.com/tastytrade Become a fan of tastytrade on Facebook: https://www.facebook.com/tastytrade Follow tastytrade on LinkedIn: http://www.linkedin.com/company/tastytrade Follow tastytrade on Instagram: http://instagram.com/tastytrade Follow tastytrade on Pinterest: http://www.pinterest.com/tastytrade/
Visibility: 3166
Duration: 13m 19s
Rating: 29