Watch: Market Gamma 101

Last June, long before anyone had heard of SoftBank’s public stock trading group, had seen the unbelievable and perhaps illegal gamma meltup in Tesla, and before even retail traders became experts in sparking gamma squeezes across illiquid names, we published what was arguably the best primers on gamma, op-ex and option-driven equity flows, straight from Goldman’s derivatives strategy team.

Those who missed it can read it here, although there is certainly a bit of a learning curve.

Still since the topic of Greeks, Gamma, and option-driven flows will become increasingly important, we urge everyone to at least watch the hour-long video below courtesy of our friends at SpotGamma, which provides an introductory overview of Gamma and it’s application to stock and options investing.

The video starts with a clear distillation of how hedging works, why large market participants become forced to trade at certain times, and how to use this knowledge to your advantage.