MTM Options Trader Newsletter - Option Gamma and How It Differs from Option Delta

[image]( [image] This Week in the Market It was a record week to kick off April. Many traders and investors wonder whether the volatile funk is over and if stocks, and especially Nasdaq, will trend more after the S&P 500 closed at a record high. Nasdaq and the Russell 2000 were able to cross back over their 50-day moving averages, something Nasdaq had not done since March 17. As implied volatility levels keep shrinking, it looks as if the non-bearish bias on the overall market needs to be respected until proven otherwise. Market participants will get their first full week of trading in April, with several economic reports due out, including trade deficit numbers and the latest PPI figure. In addition, the notes from the Federal Reserve’s last meeting will be released on Wednesday. There likely won’t be anything new from the Fed, but you never know. Have a great week of trading and investing and have a safe and healthy one too! Apr 05: Factory Orders Apr 06: JOLTS Apr 07: Trade Deficit Apr 07: FOMC Minutes Apr 07: Consumer Credit Apr 08: Jobless Claims Apr 09: PPI Apr 09: Wholesale Inventories [Read Our Blog]( Option Gamma and How It Differs from Option Delta Although it will always be debatable which is the most important option greek, many option traders point to option delta. This is understandable, considering most new option traders become acquainted with delta first. However, you cannot dismiss option gamma, which is sometimes referred to as a derivative of a derivative. Option Delta and Option Gamma Option delta measures how much the theoretical value of an option will change if the [Continue Reading ...]( MTM Watchlist Here are several trade ideas we will be looking at in group coaching class this week: TGT – After holding a bullish base at the $200 level for about a week, the stock may be poised to break higher. Potential bull call and bull put spreads will be considered. FB – The stock failed to close above the $300 level on Thursday, but it looks as if it may not be ready to concede and fail. With a move and close over $300, long calls will be explored. BYND – The stock has been in a downtrend, and a potential sell setup seems likely yet again. With that in mind, bear put spreads will be debated. [image] Gaining the Edge: How to Dominate the Market with Simple Math Join author and options industry veteran Dan Passarelli for the April MTM Trade Smart Workshop Online Education Series and learn how professional traders use simple statistical techniques to increase odds of success, time-tested techniques to construct high-probability trades and how to increase reward while reducing risk on all your option trades. Here's the full class lineup for "Gaining the Edge: How to Dominate the Market with Simple Math": - Getting Edge on Option Trades – Thursday, April 8 - High-Probability Trading and Payout Structure – Thursday, April 15 - Maximizing Risk-Reward with Spreads – Thursday, April 22 - Growing Your Portfolio with Limited Risk – Thursday, April 29 [Start Now]( 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 calling (888) OPTIONS; 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 - 2021. 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