Gamma measures the rate of change in an option’s delta for every one-point move in the underlying asset. Traders use gamma to assess position risk and adjust hedges, particularly near expiration. Sophisticated investors and market makers benefit most, as gamma helps manage volatility exposure and optimize strategies like scalping for directional moves.
Get alerts when this topic surges in newsletters. Free to start.
Sign up freeExplore more trends:Trending Topics ·AI Trends ·Business Trends ·Finance Trends ·Technology Trends