The Poor Man’s Gamma Scalp

The Poor Man’s Gamma Scalp

Check it out: The Poor Man’s Gamma Scalp

This is the definitive manual for risk reversal, but with a twist. By slightly manipulating the strike price, you can create directional positions that must be correct in the short term. As the underlying asset moves through one or more strike prices, traders can adjust their positions to create trades with little or no risk.

From there, the market can sit, rise or fall and your position is safe. But even better, you also have the opportunity to tailor it so that you can have a directional play. This means that you can turn from bullish to bearish and back without adding risk or incurring the overall cost. And the best part is that this can be done again. It’s perfect for stocks, indices, or commodities in a channel. Or you can leave a bullish (or bearish) bet.

How cool

This complete manual contains JL Lord’s famous step-by-step criteria. There is nothing left to guess. Not enough? This is a strategy that can be used in any market situation and is also used to hedge equity positions.

Material

This material was a class taught by Scott in Maui in January 2016, and the title of the book was STRATAGEM. Since then, I’ve divided the STRATAGEM text into two topics in the book, Advanced Risk Reversal and Rolling Thunder, so that students can buy only what they want to learn. This is not a cut textbook, the book is a complete manual from start to finish.

Advanced Risk Reversal Video

Supplementing the text is a clip of the popular Practical Option Tactics (POT) class.

Our POT class provides examples of trades that may work in a variety of market conditions, including bull markets, bear markets, high volatility and low volatility. Calling the example of advanced risk reversal becomes part of the volume.

What is a better way to augment the textbook than to see an example in an online classroom environment? Classes have been edited to cut out extraneous material so that you can focus on your flesh.