Industry Conversations: OIC Instructor Mat Cashman x Options Alpha

OIC instructor Mat Cashman recently joined Kirk Du Plessis of Option Alpha for a focused discussion on the mechanics and market implications of zero-days-to-expiration (0DTE) options and gamma exposure—two topics that continue to shape today’s trading landscape.
 

Listen to the Full Conversation: 

Conversation Highlights: 

Understanding Gamma and Short-Dated Sensitivity

During their conversation, Cashman broke down the role Gamma plays in determining how quickly an option’s Delta can change. He highlighted that short-dated options—especially 0DTE contracts—carry heightened Gamma sensitivity, which can accelerate how positions react to even small underlying price movements.

Cashman emphasized its value as a context tool, helping traders understand where price movement may feel faster or more exaggerated due to structural positioning.
 

Ways Market Structure Shapes Price Behavior

Leaning on his background as a floor trader and market maker, Cashman explained how hedging activity and dealer positioning can contribute to intraday volatility. These insights helped clarify why certain price areas may see sharper reactions when Gamma exposure shifts, particularly in high-volume, short-expiration environments.

His commentary underscored that understanding market structure is not about anticipating outcomes, but about individually recognizing conditions where the market may behave differently than expected.
 

Building Awareness in One’s Own Positions

A central theme throughout the discussion was the importance of understanding Gamma within one’s own option positions. Cashman reinforced that awareness and understanding of sensitivity, time decay, and potential rapid Delta changes can help investors better manage risk—regardless of whether they trade 0DTE options themselves.