July 15, 2019

How Can Gamma Effect My Option Position?

Gamma is a risk parameter used in options pricing.  It is the speed at which delta changes as the underlying asset moves up or down.  But how can that affect one’s options position?

Click the video below to find out.

Follow me on Twitter @CboeSib

about the author:

Scott Bauer

A respected market commentator seen on Bloomberg, Fox Business, CNBC and other major financial networks, Scott Bauer has 30+ years of professional equity and index options experience at the Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) and as a Vice-President/trader for Goldman Sachs. Scott graduated with Honors from the University of Illinois Business School and has taught classes both at his alma mater and at the CBOE.

Read Similar Articles

May 1, 2026

Buying Puts vs Selling Calls: What’s The Difference?

When traders expect a stock to drop, options give them more than one way to potentially profit from that move. Two of the most common bearish options strategies traders use in these situations are buying puts and selling calls. When presented with both options, some traders might ask: “If they’re both bearish options trades, aren’t […]

Read Article
February 15, 2026

Why Option Premiums Rise Before Binary Events

Ever wonder why option premiums rise before binary events in the stock market? It’s not uncommon for option prices to spike ahead of major announcements like: For context, I like to describe option premium as the difference between the contract’s price and intrinsic value. It’s essentially what buyers pay for the “hope” that an option […]

Read Article
February 6, 2026

The Delta Greek: How To Measure Option Premium

When the markets move, the Delta Greek can be one of the most valuable metrics to options traders. There’s a particular correlation between the Delta Greek and options premium that can help traders find out how much the price of an option is expected to change. From my personal experience, I believe this pattern can […]

Read Article

Read Similar Articles

https://www.prospertrading.com/spotify-selloff-is-the-11-drop-an-opportunity-in-disguise/Spotify Selloff: Is The 11% Drop An Opportunity In Disguise?
May 4, 2026

Spotify Selloff: Is The 11% Drop An Opportunity In Disguise?

Despite posting decent earnings numbers, Spotify (SPOT) dropped 11% after reporting earnings on April 28.  Now the stock appears to be showing signs of stabilization — which caught Scott Bauer’s eye. In an appearance on the Schwab Network, Scott featured Spotify in their Big 3 segment.  He discussed how Spotify has moved post-earnings, and how […]

Read Article
May 4, 2026

Weekly Earnings Prep: 2 Names To Watch This Week

We’re coming off a big week in earnings that was highlighted by some of the big Mag7 names. This week has a few other major names on deck, like PLTR, SHEL, MCD, and AMD. In this week’s Earnings Prep issue, Short Term Options Coach Mike Shorr, and Crypto / Penny Stocks Coach Howard Greenberg look […]

Read Article
May 3, 2026

The Week Ahead: Sell In May

The S&P 500 and Nasdaq closed at record highs on Friday, boosted by robust earnings and a dip ​in crude prices, and turning the page on their biggest monthly percentage gains in years. They both logged their sixth straight weekly advance, their longest run of weekly gains since October 2024. As May begins, the stock […]

Read Article