by Ted Nino
With <a href="http://www.weeklyoptionstrading.org">Weekly Options</a> there 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 works best in crazy markets unlike the standard option income strategies such as the iron condor, the calendar spread, credit spread, etc.
Gamma scalping allows a trader to set up a trade that can profit if the market moves either way - and then immediately lock in those profits and 're set' the position to once again profit if the stock moves in either direction. 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. We are properly set up to profit either way. And the bigger the moves, the better.
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 - continually scalping profits out of the trade.
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.
With gamma scalping - once a gain is showing on the trade - you can lock that in. Wether the market heads up or falls down - we don't care - either way we can make money. And if the underlying continues the move - or heads back to where it started from - MORE profits continue.
Gamma Trading is a great tool to have in the stock and option traders toolbox and especially in extremely volatile times this strategy can be a real asset to help generate super sized profits.
And along with being stress free and profitable - using <a href='http://www.youtube.com/watch?v=VF9l_zPnRaI'>weekly options</a> in this way is fun too.
To find out more about the <a href="http://www.youtube.com/watch?v=8j7JdysThY8">iron condor</a> technique, go to see Ted Nino's site on how to appropriately place, take off, manage and adjust the <a href='http://www.weeklyoptionstrading.org'>Weekly Options</a> for ongoing winnings.
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New Unique Article!
Title: Gamma Trading With Weekly Options - Taking Advantage of Rising Volatility
Author: Ted Nino
Email: theeinfoco@gmail.com
Keywords: weekly options,option trading,stock trading,stock,trading,forex trading,forex,currency trading,stock market,investing,investment,finance,personal finance,wealth building,business
Word Count: 453
Category: forex
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