FAQ: Infinite Volatility To Zero Gamma

Explore the counterintuitive relationship between implied volatility and Gamma. OIC instructor Mat Cashman uses an infinite-volatility thought experiment to explain why higher vol means lower Gamma.

0:00 Stock Up $7: Contextualizing the Move
0:42 5.6 Standard Deviations Overnight
1:13 More Context Than Just Price or %
1:48 Long Options: Probably Made Money
2:13 Short Options: Probably Lost Money
2:46 IV Doubles from 20% to 40%
3:38 New Expected Movement: $2.67/Day
4:32 Same Option, Completely Different Expectations

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