How To Implement a Gamma Scalping Strategy On Alpaca
Watch how to create a gamma scalping strategy using Alpaca's Trading API and Paper Trading environment. The code used in this video can be found in our related how-to guide: https://tinyurl.com/2av6z5zb or GitHub page: https://github.com/alpacahq/alpaca-py...
This tutorial is presented by Tony Lee, President of Alpaca Securities and Product Strategy.
0:00 - Introduction
1:33 - Importing libraries, setting up clients, and connecting API keys
2:27 - Creating your configuration variables
2:59 - Liquidating any existing positions and setting up tracking for future positions
3:40 - Setting up the parameters for the options you want to include in your strategy
4:15 - Get the options chain to filter for the options that fit the criteria
4:48 - Define the functions for implied volatility and delta
6:10 - Set up the code routine that executes the initial trades
6:43 - Create a function that maintains delta-neutrality
7:45 - Piece all of it together through the gamma scalping code routine, running it at consistent intervals
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Additional Resources
Sign Up for a Trading API Account: https://tinyurl.com/2av6z5zb
Start Paper Trading on Alpaca: https://tinyurl.com/2ywqrd7p
How to Trade Options With Alpaca: https://tinyurl.com/24jsrms3
Disclosures:
Remember that some trading strategies, including options, are not suitable for all investors due to their inherent high risk, which can potentially result in significant losses. Please read Characteristics and Risks of Standardized Options https://www.theocc.com/company-inform... and other important disclosures which can be found in our disclosure library: https://alpaca.markets/disclosures.
The views and opinions expressed by speakers are their own and do not represent Alpaca's views. Alpaca does not guarantee the completeness or accuracy of the information shared. Please note that we are using JPM as an example, and it should not be considered investment advice. All examples are for illustrative purposes only.
Securities brokerage services are provided by Alpaca Securities LLC ("Alpaca Securities"), member FINRA/SIPC, a wholly-owned subsidiary of AlpacaDB, Inc. Technology and services are offered by AlpacaDB, Inc.Cryptocurrency services are made available by Alpaca Crypto LLC ("Alpaca Crypto"), a FinCEN registered money services business (NMLS # 2160858), and a wholly-owned subsidiary of AlpacaDB, Inc. Alpaca Crypto is not a member of SIPC or FINRA.