Ask the Institute

DATE:  April 16, 2012


Can you explain the process of Gamma Scalping and how it works?

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."