The Truth About Gamma Every Options Trader Needs

Описание: Mike Butler demystifies gamma, and his first admission is refreshing: he barely looks at the number. Gamma is the rate of change of delta, but the real driver is extrinsic value, the less an option has, the higher its gamma, which is why zero-day and low-IV names like TLT show the biggest readings. Where it matters is strategy: a short put is negative gamma, so he uses a GTC order to take profits, while a long call is positive gamma and he lets it ride.

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Chapters
00:00 Bringing gamma to the platform
00:50 Gamma, the rate of change of delta
01:22 Why at-the-money and short-dated run high
01:50 Extrinsic value is the real driver
02:12 Zero-day gamma can multiply 500%
03:32 Why TLT shows a huge reading
04:11 The Microsoft earnings twist
05:00 Short put, a negative-gamma trade
06:03 Set a GTC to take profits
06:59 Positive gamma, let it ride

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