The Money Angle

Explaining gamma with a simple simulator

Matt Zeigler hosted myself and Mat Cashman to explain gamma. This is the 3rd episode I’ve done in this ELI5 series and I think it’s forced some of the better educational stuff I’ve done because I can’t assume too much knowledge.

🖼️These are the slides I used to bridge middle-school math to gamma.

One of the most common questions I get is about how “gamma scalping” actually works.

A few weeks ago I vibe-coded a simulation that I demo’d in the interview.

You can try it yourself. There’s probably no easier way to learn the concept than let this stock tick and then look at the chart/table to witness “scalping”.

📈Delta Hedging Simulator

editor

Recent Posts

trading as a sudoku puzzle with prices as the given numbers

Trailing 1-year inflation per the CPI index has been ~2.5% Prompt CME gasoline futures (RBOB)…

6 days ago

Moontower #309

In this issue: Investment Beginnings Class #3 and the game we played What if gasoline…

6 days ago

a market-making project you can do today

Friends, I tweeted something the other day that I want to expand on because it’s…

1 week ago

Moontower #308

In this issue: AI scheduled task example A rare, honest trading post-mortem Sorting through the…

2 weeks ago

Fair…I can see how you might think I lied

The math here isn’t the point, although you might like it if that’s your type…

2 weeks ago

subway platform riddle for demographics

My older kid is getting braces in a few weeks. Based on the expected time…

3 weeks ago