Options strategies for positive vs negative gamma environments. This is a BONUS video for the "Start Here - Understanding Gamma Exposure for Beginners" series. Learn which options strategies work in each gamma regime, why premium selling dominates in positive gamma (low volatility), why buying options wins in negative gamma (high volatility), how to manage transitions between regimes, and complete position sizing rules. This turns your GEX knowledge into options profits.
📊 What's Covered:
0:00 - The Missing Piece
0:20 - Prerequisites (Complete Start Here Series First)
0:50 - Level 1: The Fundamental Rule (Match Strategy to Volatility Regime)
3:30 - Level 2: Positive Gamma Strategies (Iron Condors, Credit Spreads, Strangles, Calendars)
7:45 - Level 3: Negative Gamma Strategies (Long Options, Straddles, Debit Spreads, LEAPS)
11:30 - Level 4: Transition Zones and Strategy Switching
14:15 - Integration Framework (Weekly Workflow & Strategy Matrix)
15:15 - Practice Framework (4-Week Mastery Plan)
15:45 - Series Completion
PREREQUISITE: You MUST complete the 5-video "Start Here - Understanding Gamma Exposure for Beginners" series before watching this. This assumes you understand positive gamma, negative gamma, dealer mechanics, and GEX levels.
The fundamental rule: In positive gamma (low volatility, range-bound) → SELL premium. In negative gamma (high volatility, trending) → BUY options. This is based on how dealer hedging affects realized volatility.
Positive gamma strategies: (1) Iron Condors - sell both sides, profit from range, (2) Credit Spreads - sell at gamma boundaries, collect theta, (3) Short Strangles - maximum theta collection (advanced, undefined risk), (4) Calendar Spreads - arbitrage near-term vs long-term decay. Position sizing: 2-4% risk per trade (higher probability).
Negative gamma strategies: (1) Long Calls/Puts - directional plays on amplified moves, (2) Long Straddles - profit from volatility explosion either direction, (3) Debit Spreads - defined-risk directional with better R:R, (4) LEAPS - ride extended negative gamma trends. Position sizing: 1-2% risk per trade (unpredictable).
Transition management: When net gamma approaches neutral zone (-$500M to +$1B), close existing positions early. Wait for clear regime establishment before new positions. Set alerts at regime boundaries. Don't fight the flip - capital preservation is key.
Real transition example: Week 1-3 positive gamma, sold iron condors, 3 winners. Week 4 Wednesday gamma weakening, closed for small profit, went to cash. Week 4 Thursday flipped negative, waited. Week 4 Friday bought puts in confirmed breakdown. Week 5 puts +150%. Switching strategies with regime = consistent profits.
Complete strategy matrix provided showing which strategies to use in positive, negative, neutral, and transition zones. Position sizing rules by regime. Integration with complete Start Here series concepts.
📚 SERIES COMPLETION:
This BONUS video completes the "Start Here - Understanding Gamma Exposure for Beginners" series.
✅ Video 1: What is Gamma Exposure? (Foundation)
✅ Video 2: How to Read Gamma Exposure Levels (Data & Analysis)
✅ Video 3: How Gamma Exposure Controls Market Movement (Mechanics)
✅ Video 4: The 3 GEX Setups Every Trader Should Know (Trading Strategies)
✅ Video 5: How to Combine GEX with Support & Resistance (Integration)
✅ BONUS: Options Strategies for Positive vs Negative Gamma [YOU ARE HERE]
COMPLETE SERIES - 6 VIDEOS - 85+ MINUTES OF GEX EDUCATION
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📈 Next Recommended Series:
→ How to Trade QQQ Reversals with GEX and Dark Pool Confluence - https://studio.youtube.com/video/X9Ic...
→ How to Profit from 0DTE Options Using Volume Profile - https://studio.youtube.com/video/5z6N...
DISCLAIMER: This video is for educational purposes only. Options trading involves significant risk and is not suitable for all investors. Trading involves substantial risk of loss. Past performance is not indicative of future results. All content provided by Elite Trade is for informational and educational purposes only and should not be construed as financial advice. Consult with a licensed financial advisor before making any investment decisions.
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