gamma – Gigify

Okay, so you’ve finally decided to peek into this whole “trading” thing — but the minute you open a chart or watch a video, you’re hit with words like VWAP, strike price, support, resistance, theta decay… and suddenly it feels like you’re back in math class wishing you had paid more attention.

Don’t worry. I got you.
Let’s break this down like we’re texting on a lazy Sunday morning — coffee in one hand, phone in the other.

☕ VWAP — “Where Everyone’s Hanging Out”

Think of VWAP (Volume Weighted Average Price) as the popular table in the cafeteria.
It’s where the average price is — weighted by how many shares actually traded there.

If price is above VWAP → buyers are running the show.
If price is below VWAP → sellers are calling the shots.

Traders love VWAP because it shows where “fair value” is for the day. It’s literally the market saying:

“This is where we’ve been hanging out most of the day — are you joining us, or nah?”

🎯 Support & Resistance — “The Floor and Ceiling”

Support = the floor where price tends to stop falling.
Resistance = the ceiling where price tends to stop rising.

Imagine price as a bouncy ball:

When it hits support, it often bounces back up.
When it hits resistance, it often smacks into it and comes back down.

The fun part? Once price finally breaks through support or resistance, those levels can flip.
It’s like kicking a hole in the ceiling — now it’s the new floor.

🎟 Strike Price — “Your Ticket to the Show”

Options traders, this one’s for you.
The strike price is basically the price your ticket says you can buy or sell the stock at.

Buy a Call → You’re betting the stock will be above your strike price by expiration.
Buy a Put → You’re betting it’ll be below your strike price.

Think of it like buying concert tickets:

If you got a ticket for Row 5 at $100 but the same ticket is now selling for $200?
You’re thrilled. You could flip it and make a profit.
If ticket prices drop to $50? You overpaid, and that hurts.

⏳ Theta Decay — “Your Option’s Expiration Countdown”

Theta = time decay.
If you’ve ever left an avocado out too long, you get it.

Options lose value as time passes — even if the stock price doesn’t move.
That’s why I say, “Your options are like avocados — use them while they’re fresh.”

🧠 Why This Matters

Trading isn’t just numbers and charts — it’s language.
And once you understand the lingo, you stop feeling like an outsider and start seeing the story the market is telling you.

You don’t need to memorize every single term on day one — just start with a few and practice spotting them in real time. Before you know it, you’ll be throwing around words like VWAP and support levels like you’ve been doing it for years.

Your turn:
What trading term totally confused you when you first started? Drop it in the comments — I might just turn it into the next “Trading Like You’re Texting Your BFF” post.

Options Greeks: IV, Gamma & Theta — Explained Without the Headache

If you’ve been trading options for a hot minute, you’ve probably heard words like implied volatility, gamma, and theta decay thrown around like everyone was born knowing them. Truth is, these are just fancy ways of describing how your option is likely to behave—and once you understand them, you’ll see the market in a whole new light.

Let’s break it down simple and easy so you know how to work with them.

Implied Volatility (IV): The Market’s Mood Ring

Think of implied volatility (IV) as the market’s “nervous energy.”

High IV = people expect big price swings. That makes options more expensive because there’s more “what if” baked in.

Low IV = market is chill, expecting smaller moves. Options are cheaper.

Here’s the kicker: you can be right on the direction of the stock, but if you buy when IV is sky-high and it drops after your entry, your option can lose value even if the stock moves your way. (Been there, done that.)

Gamma: The Accelerator Pedal ( and my personal favorite)

Gamma tells you how quickly your option’s sensitivity (delta) changes when the stock moves.

High gamma = your option’s delta reacts fast. Like pressing down hard on a gas pedal—suddenly you’re flying.

Low gamma = more of a slow cruise.

This is why at-the-money short-dated options can feel like a rollercoaster. Gamma is juiced, so small moves in the stock can make your option’s delta whip around dramatically.

Theta Decay: The Silent Thief

Options are like avocados: they get less valuable just sitting around. That’s theta decay—the daily time erosion baked into your contract.

Buyers feel the pain (your option loses value each day).

Sellers collect the theta like rent money.

And here’s the sneaky part: the closer you get to expiration, the faster theta eats away at your option. Which is why holding onto cheap lotto tickets at the last minute often feels like watching sand fall through your fingers.

The Takeaway

When you’re trading options, it’s not just about “is the stock going up or down?” It’s also about:

What’s IV doing?

Is gamma about to make my ride smooth or wild?

How much theta is chewing away at my premium while I wait?

Mastering these three Greeks doesn’t just make you sound smart—it helps you trade smarter. You’ll stop asking “Why did my option lose value when I was right about the stock?” and start understanding the hidden forces at play.

👉 If this made sense, stick around—I’ve got plenty more everyday-style breakdowns coming. Because trading is tough enough without the jargon.

Gigify

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Trading Lingo Explained Like You’re Texting Your BFF