Webinar: Gamma Scalping

A Delta-neutral position doesn’t stay neutral for long — Gamma scalping is one way traders try to turn that constant drift into an opportunity.

Gamma scalping is a dynamic approach to managing option risk by adjusting an underlying stock position as an option’s Delta changes. This webinar will explain how traders attempt to translate movement in the underlying market into trading opportunities while continually managing directional exposure. During this session, OIC instructor Mat Cashman will cover an outline that includes:

• How Delta measures an option’s sensitivity to movement in the underlying security
• How Gamma measures the rate at which an option’s Delta may change
• Why Gamma is generally concentrated in at-the-money and shorter-duration options
• How traders combine options and shares of stock to create a Delta-neutral position
• Why changes in an option’s Delta may require shares to be bought or sold as the underlying price moves
• How the repeated process of rebalancing a stock hedge creates the “scalping” component of the strategy

Register today to join Mat for this educational session and gain access to the complete library of on-demand OIC webinars.