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Gamma Nova Strategy

Overview

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Gamma Nova targets highly liquid options on momentum-driven stocks, aiming to capture short-term directional moves for asymmetric, risk-adjusted returns.  Trades primarily consist of front-week expiration options with exposure focusing on rapid expansion..  

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The strategy applies a whole-account framework in trade sizing, risk management, and notional hedging, ensuring structural balance across positions and capital exposure.

 

Features

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  • Signals delivered via auto trade available through Global Auto Trading

  • No set or subscription fees.  Fees variable based on value provided and invoiced to client

  • Opportunity to profit regardless of market direction 

  • Designed for clients to incrementally scale trade size with account growth
     

What it Trades

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  • Directional and momentum-based options on highly liquid, high beta stocks for front-week expiration.

  • Trades typically have anywhere from one to three days until expiration. 

  • Intra-week hedging with daily expiration Index options, or ITM or OTM stock option hedges (delta-skew) against core directional trades.

  • Macro, Momentum and news-based option trades, on both Index (QQQ/SPY) and Stock Options, with one to several days before expiration.

How It Works

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  1.  Submit New Client Agreement Form here

  2.  Determine Risk Budget (see below)

  3.  Periodically review performance and make trade size/scaling adjustments as needed

  4.  When applicable pay any invoiced fees 
     

Trade Size & Allocations

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The strategy is designed for clients starting with up to $1,000 of risk per trade, though some trades may risk as little as $250, all at 1x scale.


This variance depends on factors such as total open positions, signal strength, and option liquidity.

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Clients should understand that some trades may expire worthless (-100%). No stop losses are used; the premium paid represents the maximum defined risk. Positions may still be closed early if signal conditions change.

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Core trades are initiated with the expectation of at least 100% return potential, with higher multiples possible.  Signals specify the number of contracts at 1x scale for auto-trade execution. Clients automatically mirror this sizing for accurate replication and risk integrity with auto trading.


This is not a sizing recommendation — each client determines personal risk tolerance — but maintaining the structural 1x baseline ensures alignment with the model’s intent.

Auto-trading allows clients to onboard at any time, start at 1x scale, and scale as their account grows while preserving proportional exposure and hedge ratios.

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Risk Budgets & Scaling

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While each client determines personal risk tolerance, the strategy was designed around a $25,000 risk budget as the optimal baseline (1x scale).

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This is not an individualized recommendation, but the minimum level that enables proper execution of the model’s structure.


At this level, the average weekly capital outlay is typically $2,500 to $5,000, while maximum exposure can reach $7,000–$10,000 per week when supported by accumulated profits.

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Primary risk occurs in range-bound markets where both core and hedge premiums decay simultaneously.


Weekly risk is defined by total long premium exposure.

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Scaling is linear — with each $25,000 in net profits, clients may increase scale by 1x, maintaining consistent proportional risk relative to total capital.

 

Example:

  • Start: $25,000 risk budget (1x), avg. position =< $1,000

  • +$25,000 net gain → scale to 2x ($50,000 risk budget, =<$2,000 avg. position)

  • +$50,000 net gain → scale to 3x ($75,000 risk budget, =<$3,000 avg. position)

  • and so on

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