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Gamma Scalping – Cashflowing Volatility

Todays Date: December 15, 2018

Many option income traders think that when markets are volatile they need to stay out of the game. Not so. Enter Gamma Scalping. Here is a little known option trading strategy that can provide consistent profits from markets that seem too wild and choppy to use the usual strategies like iron condors, calendars, and credit spreads.

This strategy is initially set up to profit no matter what the market winds up doing. If the stock or index being used immediately goes up or down, a gain should be realized either way. Then, using the gamma scalping adjustment technique, the trader can lock in those gains, capturing the profit, and then immediately ‘re set’ the trade to once again make a profit no matter what the stock or index being used winds up doing.

Similar to a straddle, when using this strategy, we don’t care what the market ends up doing. We are properly set up to profit either way. Up or down, it doesn’t matter. The underlying just needs to move.

This option trading method allows the trader to continually grab – or ‘scalp’ – profits from the same trade position. Once a profit is realized from a move either up or down, the trader locks in that gain using a super easy to implement adjustment method that not only captures that profit – but also re-sets the position to once again profit either way the underlying winds up going. And this can be done, over and over again on the same position.

How many times have you purchased a stock or option and wound up actually being right and seeing some profits – only to have the underlying immediately turn around and retreat back to it’s starting position wiping out all the profits?

Trading this way takes so much stress out of trading – and actually makes it quite enjoyable. Gamma scalping allows one to not have to be right about direction and still have the ability to be very profitable. Wether the market heads up or falls down – we don’t care. Either way we can make money.

During wild crazy times, especially like the extremely volatile markets we are currently experiencing in the markets, Gamma Trading should be considered a ‘must have’ method for option traders to learn how to use correctly.

And last but not least – it’s a really fun way to trade as well.

Want to learn more about gamma trading ? Then visit gamma scalping to find the best free tools and training.

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