Gamma Nova Strategy
Overview
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 in position gamma.
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
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No set or subscription fees. Fees variable based on value provided and invoiced to client
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Opportunity to profit regardless of market direction
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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.
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Trades are typically for front-week expiration.
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Positional Hedging: Consists of hedging with index options OR delta-skew hedging with same ticker in opposing direction.
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Earnings-based option setups on liquid, high-beta names.
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Macro, Momentum and news-based option trades, on both Index (QQQ/SPY) and Stock Options, with one to four days before expiration.
How It Works
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Submit New Client Agreement Form here
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Determine Risk Budget (see below)
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Periodically review performance and make trade size/scaling adjustments as needed
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When applicable pay any invoiced fees
Trade Size & Allocations
The strategy is designed for clients starting with up to $1,500 of risk per trade (1x scale), though some trades risk as little as $500 depending on signal strength, liquidity, and number of open positions. However, average position sizes for Core Trades will generally be between $800-$1200 per trade at 1x scale.
Clients should understand that some positions can and will expire worthless (-100%). No stop losses are used; the premium paid represents the defined risk. However, trades may be closed early if sentiment or signal conditions change.
Conversely, core trades are initiated with the expectation of at least 100% potential return, with higher multiples possible depending on volatility expansion.
Signals specify contract quantity at 1x scale for auto-trade execution. The strategy is designed for clients to mirror this sizing to maintain structural integrity of the trades and broader risk framework and hedge ratios. Each client determines their own scale preference, but proper execution begins at the baseline 1x scale.
Auto-trading allows new clients to onboard at any time, begin at 1x scale, and scale up as their account grows — while maintaining proportional structure and hedge ratios.
Clients who wish to may also start at a higher scale than 1x if they choose to do so.
Risk Budgets & Scaling
While each client must define personal risk, the strategy is engineered for a $40,000 total risk budget as the optimal baseline (1x scale) and this amount is used to track overall performance. However, clients may choose a lower starting risk budget or account size, with $25,000 being the low-end side of what is needed to properly execute the strategy.
This is not individual financial advice — it reflects the model’s design assumptions for proper execution. The strategy typically will experience average weekly capital exposure/outlay between at 1x scale of $4,000 and $6,000 per week, depending on signal activity and hedging. This equates to 10-15% of the total $40,000 risk budget being exposed at any given time.
Maximum capital outlay can occasionally reach $8,000–$10,000 per week when supported by recent profits or the model supports a larger quantity of trades. This basically equates to a maximum of 25% of the total risk budget utilized at any given time (10k outlay of 40k total risk budget).
Clients that choose to utilize a lower amount total risk budget will of course see the same capital exposure in terms of dollars but would see a larger percentage of capital outlay (risk) on and any given time, as well as larger percentage changes (gain and loss %) in net performance against their total risk budget.
Primary risk occurs during range-bound markets when both core and hedge premiums decay simultaneously. Weekly risk is defined by total long premium exposure.
Scaling is linear: each additional $40,000 (or $25,000 for lower risk budgets) in net profits allows a 1x increase in trade sizing while maintaining proportional risk relative to the new total risk budget.
Example:
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Start: $40,000 risk budget (1x)
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+$40,000 net gain → scale to 2x ($80,000 total risk budget)
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+$80,000 net gain → scale to 3x ($120,000 total risk budget)
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and so on.....