What Is Gamma Scalping And Why It Matters To Trade Forex ...

Theta gang ain't shit.

Now's a good time for to get a lesson in the greeks you fucking retards. This document outlines the relative risks and rewards of certain trading strategies and how to manage risks along with some basic math and econ. This should be basic for most of you.
Why do stocks go up?
Because capital growth has a diminishing returns to scale. In the long run capital is used to create more capital generating growth until it balances with capital depreciation which is linear. You can increase the equilibrium capital accumulation by increasing savings rates essentially trading off short run consumption for long run consumption. The implications of this are that less capital intensive economies grow at faster rates than developed because developed economies are very close to hitting the equilibrium point and have to rely on technological advancements for long run growth. Not every economy is equal though, all have differences in economic institutions, government effectiveness and political norms which will also affect their long run effectiveness. Long story short if the government engages in ineffective policies like protectionism, price manipulation, overly burdensome regulations, underregulation, or inefficient redistribution programs the short run micro/macro picture will be hurt and reflected in the long run picture. The US has had a thriving stock market despite having relatively low growth because it has taken the first mover advantage in many industries. Global Tech, higher education, finance, and pharma are all centered in the US because the US policies have made doing business in the US the optimal choice for these industries. For as long as the US is a capitalist nation you can be sure that the stock market will go up in the long run. This is not necessarily the case for commodities or forex as higher growth has typically led to investments in productive efficiency outweighing increased demand in raw materials and exchange rates do not have a long run trend. Fundamentally, the stock market is a good place to invest savings into in the long run.
Stocks and exponential returns.
Stocks go up so you want to capture the value of price increases. Stocks have a delta of one and a gamma of zero resulting in a linear return to movement of the stock price. Long run capital accumulation, although diminishing, is still exponential and in the long run will return an exponentially increasing return to investment on stock. Linear gains * exponential increase in underlying = exponential gains. But what if things go down? In the short run stocks decrease in value at exponential rates which is absolutely fantastic for investors because exponential declines are diminishing in scale. 10% of 100 is 10, 10% of 90 is 9, 10% of 81 is less and so on and so forth. You may get linear returns from movement but you receive increasing returns to scale gains on the upside and decreasing returns to scale losses on the downside.
Delta and Gamma
Long options have even better fundamentals than stocks because they amplify the exponentiality through gamma. As an option moves into the money its delta increases creating exponential gains in value. As an option moves out of the money delta decreases, lowering losses. Thus options while having more risk per dollar than stocks have far superior risk returns in the short run.
Theta and Vega
The opposite is true of selling a call and you're put into the position of wanting to sell when times are most dire and hold when times are good. In exchange you get benefit from theta decay but if you can reasonably predict the movement of the market that's pretty much nothing compared to the gains from delta you could get investing the same amount of money into long calls. Selling also requires way more money further reducing its risk to return. But what about vega? When markets crash, volatility skyrockets. Long calls gain and the opposite is true once again for selling them.
Mathematically, buying longs has the best return on risk of any option strategy but higher absolute losses when delta doesn't move in your favor. Selling longs or spreads has a way worse return to risk but you'll lose less money when delta moves against you and it's harder for any one position to lose all of its value.
Theta gang isn't more profitable than bullgang, it's less risky per dollar spent. The reason market makers don't play like WSB retards is because they play on margin and the 20-30% losses we typically take and make back buying longs would cause their investors to flee bankrupting them.
Strategy implications
Selling naked longs
Credit spreads
Debit spreads
Edit: For what to do with your cash position, you could put it into gold, bonds, bond etfs, non spy correlated stocks or whatever. Low risk theta gang strats are fine in bull markets but don't expect to make real money from them. I'm cash since volatility is high, u do u.
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Hedging Techniques: Hedge, Hold or Fold? Long Synthetics / Option Trading Strategies / Hedging strategies / Call Put BEST FOREX 5 MINUTE SCALPING AND HEDGING SYSTEM REVEALED! IN LIVE SESSION (HINDI) LONG CALL LADDER / OPTION TRADING STRATEGIES / OPTION STRATEGIES / HEDGING STRATEGIES BY / Delta hedging a gamma scalping Why is the price action in the S&P 500 so bipolar? (gamma hedging)

Delta-gamma hedging is an options strategy combining delta and gamma hedges to reduce the risk of changes in the underlying asset and in delta itself. Gamma hedging trading strategies : Part I By Simon Gleadall, CEO of Volcube. In this article we’ll look at some more ideas around gamma hedging and some of the typical ways traders formulate a gamma hedging strategy. At the outset, you should know that if anyone has discovered the optimal gamma hedging strategy, they are keeping it quiet! In ... When the market is short gamma, however, the spot rate can be prone to wide swings as players are either continually selling when prices fall, or buying when prices rise. A market that is short gamma will exacerbate price movement through its hedging activity. Thus: Market-makers long gamma: Spot generally will trade in a tighter range That is Delta and gamma hedging in the spot FX market. Firstly we need to define these, and in the least mathematical way (to keep it simple) Delta - the change in value of the derivative compared to the change in price of the underlying asset. Delta can be expressed in a few ways, but in the FX markets it will normally be represented as a % of ... Partial gamma hedging. Because the profits from gamma are exponentially increasing with the spot price moves, another strategy is to only partially gamma hedge and try to let the profits run on the remaining deltas. For example, if I have 100 gamma and the spot rallies 1 point, I will be long 100 deltas. Now I could gamma hedge here and sell ... As a gamma hedging example¸ we can just continue with our discussion of the hypothetical hedge on GBP/JPY. You will recall that our delta changed from 50 to 40. If you missed that change, you would not adjust your holdings in time to keep your delta neutral. The drop-in delta from 50 to 40 didn’t just happen in a snap, like an electron moving to a new valance level. It happened over some ... In this article, we are going to e x plore what may sound like a foreign term to retail forex traders. I am referring to a typical activity option traders engage on known as gamma scalping or ... Gamma Hedging Fx Options, que son los indicadores de comercio exterior, ‎ - buy bitcoin now on the app store, is bitcoin guadagnare con il forex sfatare i miti haram. Winning Gamma Hedging Fx Options the contract. If you select "Even", you will win the payout if the last digit of the last tick is an even number (i.e., 2, 4, 6, 8, or 0). If you select "Odd", you will win the payout if the ... In this article, we are going to explore what may sound like a foreign term to retail forex traders. I am referring to a typical activity option traders engage on known as gamma scalping or gamma ... Gamma Hedging Unter einem Gamma Hedge versteht man einen Deal mit Optionsscheinen . Hierbei ist das Ziel des Anlegers, mehrere Optionen auf dem selben Basiswert in Kombination zu bringen, und zwar in der Art und Weise, dass sich die gewichtete Summe aller Deltas nicht ändert, sollte der Kurs des Basiswertes schwanken.

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Hedging Techniques: Hedge, Hold or Fold?

BEST FOREX 5 MINUTE SCALPING AND HEDGING SYSTEM REVEALED! IN LIVE SESSION ... I could never really fully successfully hold profits in forex and would always end up losing it all through stoplosses ... Delta hedging a gamma scalping TRIM Broker. Loading... Unsubscribe from TRIM Broker? ... Professional Forex Trading Course Lesson 1 By Adam Khoo - Duration: 58:55. Adam Khoo 2,926,700 views. 58:55 ... option gamma, nifty option greek values, What is the hedging strategy? What are the different types of hedging strategies? How do you hedge options? What are hedging solutions? hedging strategies ... Gamma is Why Markets are Exploding to the Upside - Duration: 19 ... Hedging 101 (How To Win A Losing Trade) - So Darn Easy Forex - Duration: 23:28. So Darn Easy Forex University 88,966 views. 23 ... option gamma, nifty option greek values, What is the hedging strategy? What are the different types of hedging strategies? How do you hedge options? What are hedging solutions? hedging strategies ... This means that maker makers have no massive positions in options and they must hedge that risk. This risk is dynamic and it changes with the price level of the S&P 500, causing bipolar price ...