Ok, I'll start simple for my first question. I just want to make sure that I'm applying Delta and Gamma concepts right. (I'm making up these numbers) Underlying: $100 Strike: $105 Delta: .40 Gamma: .2 Theoretical value: 5.0 So, now, if the stock price increases to $101, then theoretical value will increase to 5.4. Because of .2 Gamma, the Delta increase to .42, which means the NEXT time the underlying goes up $1, the theoretical value will increase by .42 (e.g., underlying goes from $101 to $102 results in theoretical value going from 5.4 to 5.82). Am I finally getting it?