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Options Jive - May 8, 2025 - Gamma Risk in Neutral Trades
MP4•Episode home
Manage episode 481386950 series 68544
Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
Hosts discuss gamma risk in options trading, focusing on how delta-neutral trades can become risky as expiration approaches. Gamma, which measures the change in delta, increases exponentially for at-the-money options near expiration. The presentation emphasizes that straddles have higher gamma risk than strangles, with wider spreads reducing gamma exposure. The closer to expiration, the more susceptible positions become to market movements. Key takeaway: Traders should manage positions early (before 21 days to expiration) to control gamma risk, focusing on what can be controlled rather than underlying price movements.
…
continue reading
1582 episodes
MP4•Episode home
Manage episode 481386950 series 68544
Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
Hosts discuss gamma risk in options trading, focusing on how delta-neutral trades can become risky as expiration approaches. Gamma, which measures the change in delta, increases exponentially for at-the-money options near expiration. The presentation emphasizes that straddles have higher gamma risk than strangles, with wider spreads reducing gamma exposure. The closer to expiration, the more susceptible positions become to market movements. Key takeaway: Traders should manage positions early (before 21 days to expiration) to control gamma risk, focusing on what can be controlled rather than underlying price movements.
…
continue reading
1582 episodes
Alla avsnitt
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