Larry’s Note: While most traders are stuck staring at charts all day trying to “time the market”… my followers are poised to profit again and again. In the past, folks have posted wins like: "$11,495 within 3 hours"… "Over 800% in 24 hours"… Or "$20k within 3 hours"… And now they’re ready to pounce when Trump’s next “24-Hour Profit Window” opens… If you’d like a chance to profit too… please join me for my event tomorrow at 8 p.m. ET. You can RSVP for free right here with a single click. Two Key Tools for Understanding Options Trading By Larry Benedict, editor, Trading With Larry Benedict Options can be a handy way to profit from a stock’s move. But they can be confusing when you’re starting out. In particular, folks often struggle with calculating how much an option should increase (or decrease) in value based on the underlying stock’s moves. And it can be tricky to judge how quickly that change should occur. But if you use the tools that I’ll share today, you’ll be able to sidestep a lot of that confusion and become a better options trader. So let’s check it out… | Recommended Links
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| An Option’s Delta One tool that captures the relationship between an option and the stock price is the option’s delta… Delta tells you how much an option’s price should move when the underlying stock price moves. Any option trading platform will quote the delta for you. Deltas for call options are positive, ranging from 0.0 to 1.0. They’re positive because the call option should increase in value when the underlying stock rises. For put options, deltas are negative, ranging from 0.0 to −1.0. That’s because the put option’s value should decrease if the underlying stock price rallies. And delta is especially useful in telling you how much that change should be. For example, a call option with a delta of 0.5 means that the option should increase by about half of the stock price’s move. So, if the stock price increases by $20, the call option should increase by $10. You typically find a 0.5 delta with an at-the-money (ATM) option. That’s an option where the strike price is the same or very close to the current stock price. However, while delta is a handy tool, it can have limitations when used by itself. That’s where another tool comes into play… Tune in to Trading With Larry Live 
Each week, Market Wizard Larry Benedict goes live to share his thoughts on what’s impacting the markets. Whether you’re a novice or expert trader, you won’t want to miss Larry’s insights and analysis. Even better, it’s free to watch. Simply visit us on YouTube at 8:30 a.m. ET, Monday through Thursday, to catch the latest. | Options Sensitivity One of the challenges of delta is that its value constantly changes. But how quickly it changes can vary. That’s where an option’s gamma fits into the picture… Gamma gauges the delta’s sensitivity to movements in the underlying stock. Again, you’ll find gamma quoted along with delta on any option trading platform. The higher the gamma is, the more sensitive the option’s price is to moves in the stock price. For someone buying an option, this can be a great help. Higher gamma means that the option’s delta should increase even for small moves in the stock price. That can rapidly boost the option’s value (and the trade’s profits). Gamma also increases the closer the option gets to expiry – especially on the day of expiration… That’s one reason “zero days to expiration” (or ODTE) option trading has become so popular (where you open an option position that expires the same day). High gamma enables you to capture a potentially explosive move – and bank quick gains – if the trade goes your way. By understanding these tools (delta and gamma) and how they work together, you can greatly enhance your chances of becoming a successful option trader. Happy Trading, Larry Benedict
Editor, Trading With Larry Benedict P.S. I hope you’re enjoying all of your Opportunistic Trader content. That’s why I have a favor to ask… Would you please add services@exct.opportunistictrader.com to your contacts list? That will “whitelist” us with your email provider and help ensure these emails reach your inbox. If you’d like to learn more about whitelisting, you can check out our detailed instructions here. Thanks for your help! Free Trading Resources Have you checked out Larry’s free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just click here to check it out. | | 
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