Mini Courses

Stratagem Trading offers one or two day courses (4 to 8-hours per day) on specific topics and/or trading strategies from time to time. These courses are designed to address and prepare for anticipated market events (such as the Crash Ready course), or to present in-demand strategies, which maybe of interest to a wider public audience. Topics range from basic to advanced.

June 6, 2026 | 10:00am to 5:00pm CT | 11:00am to 6:00pm ET
June 13 | 9:00am to 1:00pm CT | 10:0am to 2:00pm ET

Add to Cart: $549

What is Gamma Scalping?

Gamma Scalping is the aggressive and calculated (not gambling) method of adjusting the deltas of a long premium position as gamma causes the position's delta to change.

Gamma Scalping can be done with stock, futures and/or options.

Go on a deep dive to learn this very misunderstood strategy that allows the trader to manage, manipulate, exploit, and profit from most option positions. Using an option's delta proclivity to change because of price movement (gamma), professional traders use this change in an option's delta to lock in profits and/or hedge against loss.

IT IS IMPORTANT TO NOTE: An understanding of Gamma Scalping is as important in any long (or short) position, almost at the same level of significance as SKEW. If you needed to understand only two major concepts before trading any strategy it would be SKEW and GAMMA.

Scott
aka J.L. Lord

Scott (aka JL Lord) is a retired floor trader (CBOE) with over 20 years of extensive experience and expertise in leading others in their trading education journey on the subtleties of stock, commodity, currency, index and option trading.

He rose to prominence as the lead instructor/head trader for option education companies such as TradeSecrets, Optionetics, and Random Walk. His many accolades and accomplishments include authoring over 15 books, textbooks and course manuals under the nom de plume J.L. Lord.

Conditions you may want to buy a straddle, strangle or volatility. The ideal time to own premium is when Skew and/or Volatility is very low and you have reason to believe that the underlying will move more than current conditions.

Negatives (and positives) of owning premium. There are 5 greeks associated with an option – delta, gamma, vega, theta and rho.

A. Long Premium

Delta – Direction is better with a falling market as volatility may increase.
Gamma – The more movement the better.
Conditions you may want to buy a straddle, strangle or volatility. The ideal time to own premium is when Skew and/or Volatility is very low and you have reason to believe that the underlying will move more than current conditions.
Negatives (and positives) of owning premium. There are 5 greeks associated with an option – delta, gamma, vega, theta and rho.
A. Long Premium -
Delta – Direction is better with a falling market as volatility may increase.
Gamma – The more movement the better.
Vega – An increase in volatility is beneficial.
- A decrease is detrimental, but hopefully protected by long deltas.
Theta – A huge negative.
Rho – no bearing.
B. -Short Premium
Delta – Direction is better with rising market as vol tends to collapse hard.
Gamma – The less swings the better.
Vega – A decrease is wanted.
- An increase is protected by short deltas and large time decay.
Theta – A huge benefit, especially on high volatility.
Rho – no bearing.
IV. Solution
As deltas become lopsided, stock (or option) trades can be conducted to lock in current levels.
V. Delta Neutral Trading
This is NOT delta neutral trading as we will want to keep a slightly long delta when long premium and a slightly short delta when short premium.
The reason to keep a long delta at all times of being long premium is to hedge against volatility shrinking as we ride down the skew curve in bullish markets.
The reverse is true with short gamma positions.
The exact amount of deltas you will want to keep in position is a math formula that we can/will go to in depth if/when every decides they want an advanced Gamma Scalp theme month or Mini-Class.
When to Hedge?
Knowing when to adjust one's deltas can be calculated from a statistical perspective.
Other factors will come into play such as support/resistance, market closing, changes in volatility changing the deltas more than anticipated, etc.
VI. Hedges
A. Stock
This is the most straightforward method and easiest to do. One can just leave BUY and SELL orders laying around to avoid missing a trade and/or being able to leave your desk.
B. Options
This is more complicated but works the same way as with stock. A good intermediate/advanced option trader can guesstimate option prices for any given price the underlying will be at later in the day.
We will hopefully do one more example with Gamma Scalping but hedging with options.Gamma – The more movement the better.
Conditions you may want to buy a straddle, strangle or volatility. The ideal time to own premium is when Skew and/or Volatility is very low and you have reason to believe that the underlying will move more than current conditions.
Negatives (and positives) of owning premium. There are 5 greeks associated with an option – delta, gamma, vega, theta and rho.
A. Long Premium -
Delta – Direction is better with a falling market as volatility may increase.
Gamma – The more movement the better.
Vega – An increase in volatility is beneficial.
- A decrease is detrimental, but hopefully protected by long deltas.
Theta – A huge negative.
Rho – no bearing.
B. -Short Premium
Delta – Direction is better with rising market as vol tends to collapse hard.
Gamma – The less swings the better.
Vega – A decrease is wanted.
- An increase is protected by short deltas and large time decay.
Theta – A huge benefit, especially on high volatility.
Rho – no bearing.
IV. Solution
As deltas become lopsided, stock (or option) trades can be conducted to lock in current levels.
V. Delta Neutral Trading
This is NOT delta neutral trading as we will want to keep a slightly long delta when long premium and a slightly short delta when short premium.
The reason to keep a long delta at all times of being long premium is to hedge against volatility shrinking as we ride down the skew curve in bullish markets.
The reverse is true with short gamma positions.
The exact amount of deltas you will want to keep in position is a math formula that we can/will go to in depth if/when every decides they want an advanced Gamma Scalp theme month or Mini-Class.
When to Hedge?
Knowing when to adjust one's deltas can be calculated from a statistical perspective.
Other factors will come into play such as support/resistance, market closing, changes in volatility changing the deltas more than anticipated, etc.
VI. Hedges
A. Stock
This is the most straightforward method and easiest to do. One can just leave BUY and SELL orders laying around to avoid missing a trade and/or being able to leave your desk.
B. Options
This is more complicated but works the same way as with stock. A good intermediate/advanced option trader can guesstimate option prices for any given price the underlying will be at later in the day.
We will hopefully do one more example with Gamma Scalping but hedging with options.
Vega – An increase in volatility is beneficial. A decrease is detrimental, but hopefully protected by long deltas.
Conditions you may want to buy a straddle, strangle or volatility. The ideal time to own premium is when Skew and/or Volatility is very low and you have reason to believe that the underlying will move more than current conditions.
Negatives (and positives) of owning premium. There are 5 greeks associated with an option – delta, gamma, vega, theta and rho.
A. Long Premium -
Delta – Direction is better with a falling market as volatility may increase.
Gamma – The more movement the better.
Vega – An increase in volatility is beneficial.
- A decrease is detrimental, but hopefully protected by long deltas.
Theta – A huge negative.
Rho – no bearing.
B. -Short Premium
Delta – Direction is better with rising market as vol tends to collapse hard.
Gamma – The less swings the better.
Vega – A decrease is wanted.
- An increase is protected by short deltas and large time decay.
Theta – A huge benefit, especially on high volatility.
Rho – no bearing.
IV. Solution
As deltas become lopsided, stock (or option) trades can be conducted to lock in current levels.
V. Delta Neutral Trading
This is NOT delta neutral trading as we will want to keep a slightly long delta when long premium and a slightly short delta when short premium.
The reason to keep a long delta at all times of being long premium is to hedge against volatility shrinking as we ride down the skew curve in bullish markets.
The reverse is true with short gamma positions.
The exact amount of deltas you will want to keep in position is a math formula that we can/will go to in depth if/when every decides they want an advanced Gamma Scalp theme month or Mini-Class.
When to Hedge?
Knowing when to adjust one's deltas can be calculated from a statistical perspective.
Other factors will come into play such as support/resistance, market closing, changes in volatility changing the deltas more than anticipated, etc.
VI. Hedges
A. Stock
This is the most straightforward method and easiest to do. One can just leave BUY and SELL orders laying around to avoid missing a trade and/or being able to leave your desk.
B. Options
This is more complicated but works the same way as with stock. A good intermediate/advanced option trader can guesstimate option prices for any given price the underlying will be at later in the day.
We will hopefully do one more example with Gamma Scalping but hedging with options.
Conditions you may want to buy a straddle, strangle or volatility. The ideal time to own premium is when Skew and/or Volatility is very low and you have reason to believe that the underlying will move more than current conditions.
Negatives (and positives) of owning premium. There are 5 greeks associated with an option – delta, gamma, vega, theta and rho.
A. Long Premium -
Delta – Direction is better with a falling market as volatility may increase.
Gamma – The more movement the better.
Vega – An increase in volatility is beneficial.
- A decrease is detrimental, but hopefully protected by long deltas.
Theta – A huge negative.
Rho – no bearing.
B. -Short Premium
Delta – Direction is better with rising market as vol tends to collapse hard.
Gamma – The less swings the better.
Vega – A decrease is wanted.
- An increase is protected by short deltas and large time decay.
Theta – A huge benefit, especially on high volatility.
Rho – no bearing.
IV. Solution
As deltas become lopsided, stock (or option) trades can be conducted to lock in current levels.
V. Delta Neutral Trading
This is NOT delta neutral trading as we will want to keep a slightly long delta when long premium and a slightly short delta when short premium.
The reason to keep a long delta at all times of being long premium is to hedge against volatility shrinking as we ride down the skew curve in bullish markets.
The reverse is true with short gamma positions.
The exact amount of deltas you will want to keep in position is a math formula that we can/will go to in depth if/when every decides they want an advanced Gamma Scalp theme month or Mini-Class.
When to Hedge?
Knowing when to adjust one's deltas can be calculated from a statistical perspective.
Other factors will come into play such as support/resistance, market closing, changes in volatility changing the deltas more than anticipated, etc.
VI. Hedges
A. Stock
This is the most straightforward method and easiest to do. One can just leave BUY and SELL orders laying around to avoid missing a trade and/or being able to leave your desk.
B. Options
This is more complicated but works the same way as with stock. A good intermediate/advanced option trader can guesstimate option prices for any given price the underlying will be at later in the day.
We will hopefully do one more example with Gamma Scalping but hedging with options.
Theta – A huge negative.
Conditions you may want to buy a straddle, strangle or volatility. The ideal time to own premium is when Skew and/or Volatility is very low and you have reason to believe that the underlying will move more than current conditions.
Negatives (and positives) of owning premium. There are 5 greeks associated with an option – delta, gamma, vega, theta and rho.
A. Long Premium -
Delta – Direction is better with a falling market as volatility may increase.
Gamma – The more movement the better.
Vega – An increase in volatility is beneficial.
- A decrease is detrimental, but hopefully protected by long deltas.
Theta – A huge negative.
Rho – no bearing.
B. -Short Premium
Delta – Direction is better with rising market as vol tends to collapse hard.
Gamma – The less swings the better.
Vega – A decrease is wanted.
- An increase is protected by short deltas and large time decay.
Theta – A huge benefit, especially on high volatility.
Rho – no bearing.
IV. Solution
As deltas become lopsided, stock (or option) trades can be conducted to lock in current levels.
V. Delta Neutral Trading
This is NOT delta neutral trading as we will want to keep a slightly long delta when long premium and a slightly short delta when short premium.
The reason to keep a long delta at all times of being long premium is to hedge against volatility shrinking as we ride down the skew curve in bullish markets.
The reverse is true with short gamma positions.
The exact amount of deltas you will want to keep in position is a math formula that we can/will go to in depth if/when every decides they want an advanced Gamma Scalp theme month or Mini-Class.
When to Hedge?
Knowing when to adjust one's deltas can be calculated from a statistical perspective.
Other factors will come into play such as support/resistance, market closing, changes in volatility changing the deltas more than anticipated, etc.
VI. Hedges
A. Stock
This is the most straightforward method and easiest to do. One can just leave BUY and SELL orders laying around to avoid missing a trade and/or being able to leave your desk.
B. Options
This is more complicated but works the same way as with stock. A good intermediate/advanced option trader can guesstimate option prices for any given price the underlying will be at later in the day.
We will hopefully do one more example with Gamma Scalping but hedging with options.
Rho – No bearing.

B. Short Premium

Delta – Direction is better with rising market as vol tends to collapse hard.
Conditions you may want to buy a straddle, strangle or volatility. The ideal time to own premium is when Skew and/or Volatility is very low and you have reason to believe that the underlying will move more than current conditions.
Negatives (and positives) of owning premium. There are 5 greeks associated with an option – delta, gamma, vega, theta and rho.
A. Long Premium -
Delta – Direction is better with a falling market as volatility may increase.
Gamma – The more movement the better.
Vega – An increase in volatility is beneficial.
- A decrease is detrimental, but hopefully protected by long deltas.
Theta – A huge negative.
Rho – no bearing.
B. -Short Premium
Delta – Direction is better with rising market as vol tends to collapse hard.
Gamma – The less swings the better.
Vega – A decrease is wanted.
- An increase is protected by short deltas and large time decay.
Theta – A huge benefit, especially on high volatility.
Rho – no bearing.
IV. Solution
As deltas become lopsided, stock (or option) trades can be conducted to lock in current levels.
V. Delta Neutral Trading
This is NOT delta neutral trading as we will want to keep a slightly long delta when long premium and a slightly short delta when short premium.
The reason to keep a long delta at all times of being long premium is to hedge against volatility shrinking as we ride down the skew curve in bullish markets.
The reverse is true with short gamma positions.
The exact amount of deltas you will want to keep in position is a math formula that we can/will go to in depth if/when every decides they want an advanced Gamma Scalp theme month or Mini-Class.
When to Hedge?
Knowing when to adjust one's deltas can be calculated from a statistical perspective.
Other factors will come into play such as support/resistance, market closing, changes in volatility changing the deltas more than anticipated, etc.
VI. Hedges
A. Stock
This is the most straightforward method and easiest to do. One can just leave BUY and SELL orders laying around to avoid missing a trade and/or being able to leave your desk.
B. Options
This is more complicated but works the same way as with stock. A good intermediate/advanced option trader can guesstimate option prices for any given price the underlying will be at later in the day.
We will hopefully do one more example with Gamma Scalping but hedging with options.
Gamma – The less swings the better.
Conditions you may want to buy a straddle, strangle or volatility. The ideal time to own premium is when Skew and/or Volatility is very low and you have reason to believe that the underlying will move more than current conditions.
Negatives (and positives) of owning premium. There are 5 greeks associated with an option – delta, gamma, vega, theta and rho.
A. Long Premium -
Delta – Direction is better with a falling market as volatility may increase.
Gamma – The more movement the better.
Vega – An increase in volatility is beneficial.
- A decrease is detrimental, but hopefully protected by long deltas.
Theta – A huge negative.
Rho – no bearing.
B. -Short Premium
Delta – Direction is better with rising market as vol tends to collapse hard.
Gamma – The less swings the better.
Vega – A decrease is wanted.
- An increase is protected by short deltas and large time decay.
Theta – A huge benefit, especially on high volatility.
Rho – no bearing.
IV. Solution
As deltas become lopsided, stock (or option) trades can be conducted to lock in current levels.
V. Delta Neutral Trading
This is NOT delta neutral trading as we will want to keep a slightly long delta when long premium and a slightly short delta when short premium.
The reason to keep a long delta at all times of being long premium is to hedge against volatility shrinking as we ride down the skew curve in bullish markets.
The reverse is true with short gamma positions.
The exact amount of deltas you will want to keep in position is a math formula that we can/will go to in depth if/when every decides they want an advanced Gamma Scalp theme month or Mini-Class.
When to Hedge?
Knowing when to adjust one's deltas can be calculated from a statistical perspective.
Other factors will come into play such as support/resistance, market closing, changes in volatility changing the deltas more than anticipated, etc.
VI. Hedges
A. Stock
This is the most straightforward method and easiest to do. One can just leave BUY and SELL orders laying around to avoid missing a trade and/or being able to leave your desk.
B. Options
This is more complicated but works the same way as with stock. A good intermediate/advanced option trader can guesstimate option prices for any given price the underlying will be at later in the day.
We will hopefully do one more example with Gamma Scalping but hedging with options.
Vega – A decrease is wanted. An increase is protected by short deltas and large time decay.
Conditions you may want to buy a straddle, strangle or volatility. The ideal time to own premium is when Skew and/or Volatility is very low and you have reason to believe that the underlying will move more than current conditions.
Negatives (and positives) of owning premium. There are 5 greeks associated with an option – delta, gamma, vega, theta and rho.
A. Long Premium -
Delta – Direction is better with a falling market as volatility may increase.
Gamma – The more movement the better.
Vega – An increase in volatility is beneficial.
- A decrease is detrimental, but hopefully protected by long deltas.
Theta – A huge negative.
Rho – no bearing.
B. -Short Premium
Delta – Direction is better with rising market as vol tends to collapse hard.
Gamma – The less swings the better.
Vega – A decrease is wanted.
- An increase is protected by short deltas and large time decay.
Theta – A huge benefit, especially on high volatility.
Rho – no bearing.
IV. Solution
As deltas become lopsided, stock (or option) trades can be conducted to lock in current levels.
V. Delta Neutral Trading
This is NOT delta neutral trading as we will want to keep a slightly long delta when long premium and a slightly short delta when short premium.
The reason to keep a long delta at all times of being long premium is to hedge against volatility shrinking as we ride down the skew curve in bullish markets.
The reverse is true with short gamma positions.
The exact amount of deltas you will want to keep in position is a math formula that we can/will go to in depth if/when every decides they want an advanced Gamma Scalp theme month or Mini-Class.
When to Hedge?
Knowing when to adjust one's deltas can be calculated from a statistical perspective.
Other factors will come into play such as support/resistance, market closing, changes in volatility changing the deltas more than anticipated, etc.
VI. Hedges
A. Stock
This is the most straightforward method and easiest to do. One can just leave BUY and SELL orders laying around to avoid missing a trade and/or being able to leave your desk.
B. Options
This is more complicated but works the same way as with stock. A good intermediate/advanced option trader can guesstimate option prices for any given price the underlying will be at later in the day.
We will hopefully do one more example with Gamma Scalping but hedging with options.
Conditions you may want to buy a straddle, strangle or volatility. The ideal time to own premium is when Skew and/or Volatility is very low and you have reason to believe that the underlying will move more than current conditions.
Negatives (and positives) of owning premium. There are 5 greeks associated with an option – delta, gamma, vega, theta and rho.
A. Long Premium -
Delta – Direction is better with a falling market as volatility may increase.
Gamma – The more movement the better.
Vega – An increase in volatility is beneficial.
- A decrease is detrimental, but hopefully protected by long deltas.
Theta – A huge negative.
Rho – no bearing.
B. -Short Premium
Delta – Direction is better with rising market as vol tends to collapse hard.
Gamma – The less swings the better.
Vega – A decrease is wanted.
- An increase is protected by short deltas and large time decay.
Theta – A huge benefit, especially on high volatility.
Rho – no bearing.
IV. Solution
As deltas become lopsided, stock (or option) trades can be conducted to lock in current levels.
V. Delta Neutral Trading
This is NOT delta neutral trading as we will want to keep a slightly long delta when long premium and a slightly short delta when short premium.
The reason to keep a long delta at all times of being long premium is to hedge against volatility shrinking as we ride down the skew curve in bullish markets.
The reverse is true with short gamma positions.
The exact amount of deltas you will want to keep in position is a math formula that we can/will go to in depth if/when every decides they want an advanced Gamma Scalp theme month or Mini-Class.
When to Hedge?
Knowing when to adjust one's deltas can be calculated from a statistical perspective.
Other factors will come into play such as support/resistance, market closing, changes in volatility changing the deltas more than anticipated, etc.
VI. Hedges
A. Stock
This is the most straightforward method and easiest to do. One can just leave BUY and SELL orders laying around to avoid missing a trade and/or being able to leave your desk.
B. Options
This is more complicated but works the same way as with stock. A good intermediate/advanced option trader can guesstimate option prices for any given price the underlying will be at later in the day.
We will hopefully do one more example with Gamma Scalping but hedging with options.
Theta – A huge benefit, especially on high volatility.
Conditions you may want to buy a straddle, strangle or volatility. The ideal time to own premium is when Skew and/or Volatility is very low and you have reason to believe that the underlying will move more than current conditions.
Negatives (and positives) of owning premium. There are 5 greeks associated with an option – delta, gamma, vega, theta and rho.
A. Long Premium -
Delta – Direction is better with a falling market as volatility may increase.
Gamma – The more movement the better.
Vega – An increase in volatility is beneficial.
- A decrease is detrimental, but hopefully protected by long deltas.
Theta – A huge negative.
Rho – no bearing.
B. -Short Premium
Delta – Direction is better with rising market as vol tends to collapse hard.
Gamma – The less swings the better.
Vega – A decrease is wanted.
- An increase is protected by short deltas and large time decay.
Theta – A huge benefit, especially on high volatility.
Rho – no bearing.
IV. Solution
As deltas become lopsided, stock (or option) trades can be conducted to lock in current levels.
V. Delta Neutral Trading
This is NOT delta neutral trading as we will want to keep a slightly long delta when long premium and a slightly short delta when short premium.
The reason to keep a long delta at all times of being long premium is to hedge against volatility shrinking as we ride down the skew curve in bullish markets.
The reverse is true with short gamma positions.
The exact amount of deltas you will want to keep in position is a math formula that we can/will go to in depth if/when every decides they want an advanced Gamma Scalp theme month or Mini-Class.
When to Hedge?
Knowing when to adjust one's deltas can be calculated from a statistical perspective.
Other factors will come into play such as support/resistance, market closing, changes in volatility changing the deltas more than anticipated, etc.
VI. Hedges
A. Stock
This is the most straightforward method and easiest to do. One can just leave BUY and SELL orders laying around to avoid missing a trade and/or being able to leave your desk.
B. Options
This is more complicated but works the same way as with stock. A good intermediate/advanced option trader can guesstimate option prices for any given price the underlying will be at later in the day.
We will hopefully do one more example with Gamma Scalping but hedging with options.
Rho – No bearing.

Solution. As deltas become lopsided, stock (or option) trades can be conducted to lock in current levels.

Delta Neutral Trading. This is NOT delta neutral trading as we will want to keep a slightly long delta when long premium and a slightly short delta when short premium. The reason to keep a long delta at all times of being long premium is to hedge against volatility shrinking as we ride down the skew curve in bullish markets. The reverse is true with short gamma positions. The exact amount of deltas you will want to keep in position is a math formula that we can/will go to in depth if/when every decides they want an advanced Gamma Scalp theme month or Mini-Class.

When to Hedge? Knowing when to adjust one's deltas can be calculated from a statistical perspective. Other factors will come into play such as support/resistance, market closing, changes in volatility changing the deltas more than anticipated, etc.

Hedges

A. Stock. This is the most straightforward method and easiest to do. One can just leave BUY and SELL orders laying around to avoid missing a trade and/or being able to leave your desk.

B. Options. This is more complicated but works the same way as with stock. A good intermediate/advanced option trader can guesstimate option prices for any given price the underlying will be at later in the day.

We will hopefully do one more example with Gamma Scalping but hedging with options.

Early bird rate is extended!

Add to Cart: $549

Schedule | Class Outline

Early bird rate is extended!

Included

1.5 days of class instructions
Access to Class Recordings
PDF copy of slides
Gamma Example During Market Hours
Supplemental P.O.T. Class Recordings
Free 30-day Trial of P.O.T. Class (*For New Students Only)

Add to Cart: $549

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