Options trade setups & education plus proprietary options-selection tool.
The Gamma Optimizer service uses a proprietary trading system, called VRP350, which looks for vertical spreads in the SPX that expire 3 sessions ahead and are priced at 50% of the width. For example, if the available spreads are spaced at 5 points, then the system look for spreads priced at $2.50. The key is that the system is looking for a trade that has a 1:1 risk reward (risking $1 to make $1 in profit).
The neural-network based system is trained with historical SPX data that seeks to predict a probabilistic distribution 3 sessions out and contrast it with the implied distribution from SPX options prices. If a replicated 50% binary put in SPX is cheap, then it’s bought; if it is expensive, then it’s sold. This algorithm is among the tools Leo provides in guiding members of Gamma Optimizer with options trading strategies and setups for minimizing risk and maximizing returns.
Leo has developed an options education video series in his Gamma Optimizer service. The 6-part series, ranging from an introduction to options to advanced options trading strategies, is currently only available to GO members, and archived in the service's video section. The series covers:
1) Introduction to Options: Basic concepts and tips.
2) Options Pricing: Pricing options in a risk-neutral world, plus Binomial model introduction.
3) Talking Greek: Advanced options pricing, Black Scholes Merton Model, volatility and greeks.
4) The Power of Gamma: Time decay, Gamma and Vega in detail.
5) Put-Call Parity and Synthetics: Trading implications and applications related to synthetic positions.
6) Coming soon.
Leo has also developed a premium set of online courses for all levels of options trading. Whether you're just getting started in the options world or wish to master sophisticated strategies, these courses will make a savvy and skilled options trader. Learn more and get discount code to save more than 50%.