DATE: April 16, 2012QUESTION:Can you explain the process of Gamma Scalping and how it works?ANSWER: Gamma Scalping is the practice of buying and selling stock in order to reduce unwanted directional risk in a position. The Gamma Scalping process begins with a position that has a delta of zero, like a straddle or strangle, but has a relatively high level of gamma. To learn more about the process of Gamma Scalping, view this week's segment of "Ask the Institute."
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