How to Manage Gamma Risk in Options Trading

Options involve risks and are not suitable for all investors. Before trading, read the Options Disclosure Document: https://bit.ly/2v9tH6D . Gamma risk is the possibility of options prices changing dramatically as they approach expiration due to price changes in the underlying asset. While monthly options traders often avoid gamma risk by closing positions well before expiration, when you’re trading weekly options, gamma risk is largely unavoidable. Education coach Mike Follett explains how gamma risk works and how to manage it. This video uses thinkorswim® thinkback, which allows you to see options data from previous trading days. To gain access to the full Weekly Options course and more education, open an account with TD Ameritrade: http://bit.ly/SignUpTDAmeritrade Subscribe: http://bit.ly/SubscribeTDAmeritrade To learn more about options, tune in weekly to the All About Options webcast for livestreamed interactive sessions with TD Ameritrade education coaches: https://bit.ly/TDAmeritradeAllAboutOptions TD Ameritrade is where smart investors get smarter. We post educational videos that bring investing and finance topics back down to earth weekly. Have a question or topic suggestion? Let us know. Connect with TD Ameritrade: Facebook: http://bit.ly/TDAmeritradeFacebook Twitter: http://bit.ly/TwitterTDAmeritrade #thinkorswim #trading #options

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