scalping gamma is the readjustment of delta. One does this by buing and selling shares to offset the risk in decay of options. As long as you are covering decay, then long gamma is the way. Try to find really cheap vol first, then chart the stock. If it looks range bound, then watch how it trades.
There is one slight problem in this. The options markets are very efficient right now and the cost of the gamma is priced into the front month options. Basically the position theta that you have on will be equal to the amount of money you can make by scalping the stock. So if your theta is 1000, then you could expect to make 1000 a day scalping the stock. You are still exposed to vol implosion. Now there is a way to take advantage of the gamma and utilize it more but that would be a very long explanation and probably only add even more confusion. If you do want to scalp gamma at least learn to look at the Alpha of the options. The Alpha is the gamma/theta. It's a ratio that will at least give you an idea of how much you are paying for the gamma.
I agree, which is why I am short the front month stuff. There will probably be an opportunity to get long vol, but not until after Iraq. There is a tremendous amount of demand for vol right now in products which we as exchange traded option players don't see. From what I hear, institutions are gobbling up long vol products.
Won't someone post a past option trade and the thought behind it? The thread for Optionetics is very interesting. I attended their sales pitch in Charlotte a few months ago. The speaker was pretty talented (at sales, anyway). Out of about 30 attendees I'd say 4 or 5 signed up. I sort of felt like I was at a Tony Robbins motivational seminar. After the pitch I went out and bought Options as a Strategic Investment by McMillan. I've made a few bucks doing covered calls since - that book really puts so many worthless ones to shame. Trajan - I'll be in the Bay Area in May. If you live there, can I take up your offer in the Optionetics thread: beer for trading advice? Maybe over shuffleboard at Triple Rock in Berzerkeley?
Here is a link to several articles by a trader that uses Horizontal Calendar Spreads. The articles are rather long, and the author does not limit himself to just discussing option trading. I have no experience trading Calendar Spreads and so I do not know how accurate the information in the articles is. Perhaps experienced Calendar spreaders might comment on some of the claims made in these articles. http://www.webtrading.com/options.htm