A long gamma strategy where a trader dynamically buys low and sells high in the underlying stock to monetize delta shifts while holding long options.
Gamma Scalping is a adjustment & hedging options trading strategy (2 legs) engineered for defined decay risk risk profiles in high realized volatility market environments.
Scalped stock gains exceeding option theta decay
Option premium paid minus scalped profits
Realized Volatility threshold
| Action | Contract Type | Strike Selection | Quantity |
|---|---|---|---|
| BUY | CALL | Long ATM Straddle/Call | 1x |
| BUY | STOCK | Dynamic Delta Adjustments | 100x |
Protects long stock gains by buying an OTM Put for floor protection and selling an OTM Call to fund the put cost.
🔐 Adjustment & HedgingThe fundamental defensive adjustment: closing an existing option leg and reopening a new option leg at a different strike or expiration.
🔐 Adjustment & HedgingCombines futures contracts with option spreads to insulate institutional commodity/index portfolios from overnight shocks.
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