Going long gamma (for profit)

Wheezooo said:
At high vol, surfaces flatten, change on change diminish, wings don't do give you all the love and happiness they do at low vol going to high vol. It requires you to see surface change, play with it in your mind, move it back and forth along a time horizon, see how it protects or does not protect the rest of your inventory, what's the current skew, are people properly pricing volgamma and voltheta (or whatever you kids call things these days...vanna, zomma, vomit, indica, sativa...)...and on and on... but NEVER, EVER, NEVER, short teenies!

Retail option trading is a bit nuts, but I think I said that on one of my first posts.

...but if I have to answer. It was the 10 delta and less, I loved the most.
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Thank you, I think I kind of understand what you said. Wait, I am not sure. :banghead:

I kind of agree with you we retails are nuts and most of us have no "inventory" to speak of and nothing to "balance", we just buy/write a few calls and pray.
 
taowave said:
Which broker do you use to trade??

TOS lets you simply click on "butterfly" and you specify the width..Problem is for underlying like the SPY,the widest fly you can get price and greeks for is 4 pts wide.But every 4 point fly is shown with the greeks.I wish they would let you do custom widths.

I typically just look at price/delta on a Fly and dont worry top much about the rest....
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Schwab. They do have the StreetSmart Edge platform but I am more familiar with their basic trading platform as I have been using that for years. Hard to teach an old dog new tricks.

Perhaps after their TDA buyout, I should try TOS.
 
nooby_mcnoob said:
Some peeps on Twatter apparently trade gamma for profit using OTM options that are 1-2 weekly ATR out. I conceptually understand that they think theta decay will be slower than gamma increase when the options become ITM but is it really as simple as that? Anyone here trade gamma for profit?

It seems like a fancy phrase for "lotto ticket".
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From your description, it sounds like they are trading speed, not nominal gamma. I'd like to read their posts. What is their Twitter handles (or PM me if you prefer not to post it here for any reason).
 
Trader13 said:
From your description, it sounds like they are trading speed, not nominal gamma.
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I'm really scratching my head as to why you would jump to that conclusion. Taking on a first order expense, with the 'primary' objective of seeking benefit from a third order movement that occurs at the 4th decimal?
 
Wheezooo said:
I'm really scratching my head as to why you would jump to that conclusion. Taking on a first order expense, with the 'primary' objective of seeking benefit from a third order movement that occurs at the 4th decimal?
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There is a "sweet spot" for a ramp up in gamma which it sounds like they are targeting. That's why I'd like to read their posts, to get the full context.
 
Trader13 said:
There is a "sweet spot" for a ramp up in gamma which it sounds like they are targeting. That's why I'd like to read their posts, to get the full context.
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If you were talking VdelV my eyebrow would probably be a bit lower, and that sweet spot is definitely outside of 1-2 ATR.

Please let me know, I'm curious what they are doing, but not curious enough to break my no Twitter rule.
 
Wheezooo said:
If you were talking VdelV my eyebrow would probably be a bit lower, and that sweet spot is definitely outside of 1-2 ATR.

Please let me know, I'm curious what they are doing, but not curious enough to break my no Twitter rule.
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Sorry for any confusion, but my request for the Twitter posts that prompted this thread was directed to the OP as only he/she would know. A little frustrating when anonymous sources are cited who have all the background details.

Also note that the OP said weekly ATR's, not daily. That should tweak your eyebrow :)
 
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Trader13 said:
Sorry for any confusion, but my request for the Twitter posts that prompted this thread was directed to the OP as only he/she would know. A little frustrating when anonymous sources are cited who have all the background details.

Also note that the OP said weekly ATR's, not daily. That should tweak your eyebrow :)
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My apologies,
I am not trying to be contentious, I guess old habits die hard. Just seem more like a positive characteristic than a primary motivator. Not difficult to quantify in dollars and cents.
..and yes, I caught weekly. I'll say no more, not that I trade anyway, I'll just go back to playing LOL.

Although, I should mention that just a couple of hours ago I had to run off a tennis court in the middle of a match, hit 97 on the court.. ripped a layer of porcelain off the bowl. Absolute rectal explosion of the type that defies gravity and winds up spraying you all over your own ass... Maybe that's what's makin' me stupid. :rolleyes: Nah... who am I kiddin, just born this way.:D
 
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