Can a Portfolio Be Theta-Neutral and Gamma-Positive Simultaneously? ⎊ Path

Can a Portfolio Be Theta-Neutral and Gamma-Positive Simultaneously?

Yes, a portfolio can be Theta-neutral and Gamma-positive simultaneously. This is often achieved through strategies like buying a calendar spread (which can be net Gamma-positive and Theta-neutral) or a combination of options and underlying asset positions.

The goal is to profit from price movement (Gamma) while eliminating the daily cost of time decay (Theta).

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Glossar

Profit from Price Movement

Driver ⎊ The primary driver of profit from price movement in options trading is the option's delta, which quantifies the directional exposure to the underlying cryptocurrency asset.