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1/ PowerTrade #GreekWeek Day 2 - GAMMA

Iโ€™m sure you have heard it mentioned all over twitter, and it might seem a bit confusing, but in this #PowerKnowledge thread we are going to demystify Gamma and explain it in simplest of terms.

Gamma NFT Drop at the end... Image
2/ Gamma is the rate of change in Delta. If you don't remember Delta, here is our thread from yesterday explaining it.

TLDR: Delta measures change in the option price for every one dollar move, and gamma measures the change in Delta.

3/ So Gamma is actually what's called a second order derivative, because it doesn't measure the change in the Options value, it measure the change in the thing that measure the change of the options value ie. Delta. Image
Read 14 tweets
1/ Today in our #Powerknowledge series we are going to talk about what happens when you buy or sell Call?

Over the course of this series we will talk about Greeks, Volatility, Leverage, and Spreads, but first we must build a foundation.

A thread. ๐Ÿงต๐Ÿ‘‡
2/ So what is a Call? I'm sure you have heard it 100 times, a call is the right (but not the obligation) to buy $BTC at a certain price, within a certain time period.
3/ That's the book definition, but I find it helps to look at a real world example. Say you buy one 50k #BTC Call that expires in 60 days. If at expiry #BTC its trading at 52k, you have the right to buy 1 #BTC for 50k. Does that make sense? You just bought #BTC at at 2k discount.
Read 18 tweets

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