Gamma Scalping (Trading Perpetuals & Options)
Position Setup:
Sell an ETH/USDT call option with a $2,600 strike price for a premium of $100.
Hedge by taking a long position on the ETH/USDT perpetual contract at $2,500 using 10x leverage.
Market Movement:
ETH price fluctuates between $2,450 and $2,550 over the next 7 days.
Using the Greeks Dashboard:
Gamma Scalping: Gamma, which measures the rate of change of delta, is crucial in this strategy. Since you are gamma scalping, you will closely monitor gamma on the dashboard to ensure your delta exposure changes dynamically with market fluctuations. When gamma signals a favorable opportunity, you can close or adjust your perpetual position.
Theta Tracking: The Greeks Dashboard allows you to track theta, ensuring you make the most of the option premium without getting too close to expiry where decay accelerates.
Net Position: You capture $500 in perpetual profit by managing gamma fluctuations and keep the $100 premium from the option.
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