Losses can creep up on you quickly. As time passes gamma could grow more than deltas, which is why you should keep an eye on gamma and delta. Find out about gamma scalping and managing a position’s gamma.
Index options tend to have wide bid and ask spreads. Try to keep slippage low by making use of price discovery.
What is volatility skew and how to use it.
Prices tend to get drawn toward the option strike with the highest open interest. That means those who are long the option may experience the most pain if the stock settles at the strike price at expiration.
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