MTM Options Trader Newsletter - Delta vs. Gamma: What’s the Difference?

[image](=) [image] This Week in the Market The S&P 500 dropped below an upward sloping support level last week, which could be a sign buying is weakening. The market has been very resilient and has rallied back after support levels were broken, and there are still several potential support levels standing in its way. As always, proceed with caution and keep an eye on those levels to help guide you. A non-bearish outlook on the market still makes sense, despite the break this past week. Strongly consider letting the index confirm a hold of additional support first. The VIX seems to have started a little uptrend with levels slowly rising with option prices. Economic reports are slower compared with the past couple of weeks, but that does not mean the few listed below won’t move the market. Included this week is the latest statement from the Federal Reserve about rates. Although no rate movement is expected, there has been a lot of speculation about what the Fed might do going forward. Traders and investors will be listening to the Fed’s language on Wednesday afternoon. In addition, a couple of housing numbers are due this week. Have a safe, healthy and spontaneous week (except for in your trades)! Mar 19: Housing Starts Mar 20: FOMC Mar 21: Jobless Claims Mar 21: Leading Economic Indicators Mar 21: Existing Home Sales [Read Our Blog](=) Delta vs. Gamma: What’s the Difference? It is and always will be debated which option greek is the most important. In fact, there most likely will never be a definitive answer to that question. It may depend on the strategy. Many option traders will refer to option delta as the most important option greek, and that is understandable. I would venture to say most option traders (including myself) learned about delta first. No matter what your thoughts are on delta, however, you can’t dismiss gamma. Option gamma is sometimes referred to as a derivative of a derivative or, as I like to call it, [Continue Reading …]() MTM Watchlist Here are a few trade ideas we will most likely consider in MTM’s LIVE Advantage Group Coaching class this week: SPY – A double calendar did so well last week that we need to look for more. Additional verticals will be modeled out as well. TSLA – We did a couple of successful bull call spreads last week, and after Friday’s pullback we’ll explore more. AAPL – A neutral calendar worked well, and additional long calendars will be examined this week, for sure.. [image]( The strategies in this newsletter are for educational and informative purposes only. All information disclosed in this newsletter should not be considered complete in its entirety. Market Taker Mentoring, Inc. will not be held responsible for changes, oversights, errors or omissions. Dates, prices, news and other information may not be accurate. Please verify all information before trading. You alone are responsible for your own investment decisions. Options involve risk and are not suitable for all investors. Before trading options, please read Characteristics and Risks of Standardized Option (ODD), which can be obtained from your broker; by emailing investorservices@theocc .com; or from The Options Clearing Corp., 125 S. Franklin St., Suite 1200, Chicago, IL 60606. No statement in this newsletter is intended to be a recommendation or solicitation to buy or sell any security or to provide investment or trading advice. Traders and investors considering options should consult a professional tax advisor as to how taxes may affect the outcome of contemplated options transactions. Copyright Market Taker Mentoring, Inc. 2008 - 2024. All rights reserved. Reproducing or redistributing this content is a violation of federal law. [image] If you do not wish to be contacted via email, you can unsubscribe using this link: [Unsubscribe]( Unsubscribing from email notifications DOES NOT cancel your class, subscription or recurring payments. We recommend that current students do not unsubscribe from email notifications. If you unsubscribe from email notifications, you will not be notified on how to access the classes or subscriptions in which you are enrolled. Market Taker Mentoring, Inc. PO Box 117 Frankfort, Illinois 60423 United States