Stocks & Commodities V. 28:3 (60, 66): Explore Your Options by Tom Gentile

Stocks & Commodities V. 28:3 (60, 66): Explore Your Options by Tom Gentile
Item# \V28\C03\051EYO.PDF
$2.95
Availability: In Stock

Product Description

Explore Your Options by Tom Gentile

GAMMA SCALPING A VERTICAL?

What do you think about hedging directional risk of a vertical spread with stock?

That’s an interesting question, but one without a “one size fits all” answer. Hedging delta risk and possibly taking advantage of this position type’s potential long gamma rests with the trader’s objective, risk tolerance, and whether he or she maintains account restrictions regarding this type of hedge and net positioning.

When a trader has some type of vertical on, the position is already hedged to a large extent by the other short or long contract. Depending on how close the position is to the underlying, time remaining, strike distance, and volatility, the hedge may be more or less effective than it had been prior to when the position was established. Nonetheless, the vertical spread does afford the trader a net contract–neutral position.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order