SIMPLE Trading Strategy | Using Options Gamma

In this video, I share a trade idea on SBUX using options gamma as my guide to making the best decision possible. Stock options gamma is the risk that the market maker has when he takes the other side of your options trades so understanding its importance is critical to your stock and options trading success.

About me👨🏻‍💻: Steve Patterson is one of the Top Proprietary Traders in the world, he has worked with 5 of the largest prop firms and he has a long history as one of the most dedicated trading educators.

He has survived, adapted and ultimately prospered over his 37+ year career. He believes that in order to be a successful coach, you have to experience the highs and lows. He's in a unique position than his competitors based on his vast background and knowledge within the industry.

His goal is to transfer his experience to help you save years of frustration and sleepless nights. He's excited to share everything that he's learned from his extensive background and finally help you build the financial future that you've dreamed about for you and your loved ones.

[paulstone]

Went back and look at the chart today.. You were 110% on the money correct to the penny.. You are a true professional:)

[jameschen]

You’re very underfollowed. Best explanation of gamma I seen on YouTube.

[adproproductions]

Great video! I'm really wrapping my head around this. I've been following Spot Gamma as well. Incredible how much options control the movements of the underlying. Thanks for this.

[kevinmatiyow]

This video really opened my eyes on gamma, plus the website he mentioned is great

[TL-rf]

How to use this for 0DTE butterfly SPX spreads would be an awesome video. Balancing days are easy using Open interest averages matching between highest volumes on the options chain for call or put strikes and with the most crossed thru/touched strikes on the intraday 30 minute time frame price chart. But you have to use the calculated gamma thinkscript set onto the options chain layout customized for the realistic highest gamma on the call and put side, one will win on higher implied volatility days. Low implied vol. days the FLYS cost more.

[DorianEvans-kc]

Im so appreciative of this video and strategy. Thank you so much for not putting any cut or fluff on the best direction to take in trading options. You're great! God bless you!!!

[coolhunter]

What abt the big guys/hedge funds buying options instead of selling? Or using options just for hedging their stock purchase? Some more variables to consider.

[paullopez_ai]

Really enjoyed this Steve. I normally don't like to go long options. I would just sell puts to finance a call ratio on the top side. That way if nothing happens, I don't lose any money, maybe a few pennies. What about the effects of 0DTE SPX?

[alexandres]

Hi what do you think about Victorio from TPA [ trade pro academy ]

[mem]

Gamma is the rate of change of Delta What you describe is not "scalping Gamma", which is owning a straddle synthetically or otherwise and scalping the calls when prices rise and the puts when it falls or using the underlying to restore delta to flat. Positions shud be initiated when MIV is< statistical vol. then scalp away.

[cosmokramer]

you mentioned "MM makes the call more expensive". Is it by jacking the IV.

[jmiller]

Excellent video! I really appreciate you sharing it!

[jamesmckeon]

Great insight and some valuable information!

[Mojo]

I went back and looked, SBUX closed on 07-09-2021 at 117. Not sure how this would actually help me

[tunster]

So is this like a covered call seller/writer not wanting to be exercised on his sold contracts? He either buys it back, rolls over/up to next month or buys a higher strike call to lower his risk.

[evanzhou]

Thanks, Steve, I really appreciate your insights on gamma exposure, one question, how does the MM to manipulate the price within the range of 110.0 to 115.0

[stephenlim]

The open interest includes retails who have sold options and not just institutions right ?

[TL-rf]

Gamma calculated is open interest x gamma on the options chain x 100

[LARGERTHANLIFE]

My favorite Trade like a professional and they’re using Robinhood

[TravHubert]

This is brilliant, thank you for taking the time. Love right back at ya!