How Is a "Gamma Scalping" Strategy Executed? ⎊ Path

How Is a “Gamma Scalping” Strategy Executed?

Gamma scalping is a Delta-neutral trading strategy that seeks to profit from an option's Gamma. The trader aims to keep the portfolio Delta-neutral by continuously buying or selling the underlying crypto as its price fluctuates.

This process of re-hedging captures small profits from the option's positive Gamma, effectively turning volatility into profit.

Define the Term ‘Delta Neutral’ in Options Trading

What Is the Risk a Delta-Neutral Portfolio Still Faces?

How Does a Delta-Neutral Strategy Protect a Trader’s Portfolio?

What Is “Delta Hedging” and How Is It Used with Options?

How Does a Market Maker Manage the Risk of Gamma in a Delta-Hedged Portfolio?

What Is a ‘Delta-Neutral’ Portfolio and Why Is It the Goal of an Options Market Maker?

What Is ‘Gamma’ and Why Is a High-Gamma Position Sensitive to Small Price Movements?

How Is Delta Used in Constructing a Delta-Neutral Portfolio?

Glossar

Scalping

Momentum ⎊ The practice of scalping, within cryptocurrency, options, and derivatives markets, centers on exploiting fleeting price discrepancies arising from high-frequency trading and order flow imbalances.