OptionSellers, LJM, Catalyst are among the prominent fund managers currently facing litigation for their large option losses. Retail investors regularly lose their savings by shorting options as well.

Gamma Scalping 101 - GammaTheta Trading described the concept of gamma and theta, the daily P&L of an option market-maker, as well as the objectives of gamma scalpers. It linked options to implied / ...

Here's the latest question sent in by site visitors who have attended equities interviews at investment banks. This question has allegedly been asked in equity derivatives trading interviews at HSBC.

There is something unique about the Greek option, gamma. This week, we discuss the characteristics of gamma including its relation to volatility and time. Unlike delta which benefits a long position ...

Previously in this column, we discussed several advantages of day trading derivatives compared with the underlying asset. This week, continuing this discussion, we show why options have a marginal ...