by Ted Nino
When the markets are calm, the <a href="http://www.doublecalendar.com">Double Calendar</a> strategy is a good trading option - and while 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.
One way to think of gamma scalping is to compare it to day trading - where the trader is looking to capture profits from quick little moves - however the difference here is that due to this strategy set up - most of the risk that is normally associated with day trading has been removed. The set up for this trade can profit regardless of what the stock or index being used winds up doing. If it moves up, a gain is made. If it moves down, a gain is made. And then, when a profit has been realized, the trader can immediately lock in that profit and 're-set' the position so that it will profit again regardless what happens from that point forward.
When gamma scalping - the trader doesn't care which way the market will be heading. The trade is set up to profit either way. Up or down - its all good. And the bigger the moves, the better.
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.
One of the most frustrating things to directional traders is when a trade actually goes in their direction, making them profit, only to immediately revers and go the other way, wiping out their gains, and perhaps even then dipping lower putting them into losses. Gamma Scalping is a strategy that can erase that frustration because it immediately locks in those realized gains while repositioning itself to once again be profitable if the underlying instrument moves either way.
Gamma Scalping eliminates this. When profits are realized - gamma scalping allows you to capture them forever. And if the underlying continues the move - or heads back to where it started from - MORE profits continue.
For option income traders who are struggling in these especially volatile times trying to use the standard income trades like condors, credit spreads, and calendars, <a href="http://www.gammascalping.net">Gamma Trading</a> is a good method to learn and consider using and adding to their collection of other option strategies.
And along with being profitable - it's actually quite an enjoyable way to trade too.
Want to learn more about <a href="http://www.doublecalendar.com">Double Calendar</a> ? Then visit <a href="http://www.youtube.com/watch?v=cXdb8SVffYE">calendar spread</a> to find the best option trading free tools and training.
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New Unique Article!
Title: Gamma Scalping - Cashflowing Volatility
Author: Ted Nino
Email: zadijaxx@gmail.com
Keywords: gamma scalping,option trading,stock trading,stock,trading,forex trading,forex,currency trading,stock market,investing,investment,finance,personal finance,wealth building,business
Word Count: 505
Category: forex
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