Gamma: The Accelerator Behind Your Delta

Gamma measures the rate of change in delta for every $1 move in the underlying. Discover why gamma is highest for at-the-money options, how it accelerates delta as a stock moves in your favor, and why high gamma can work against you just as quickly if the stock reverses.

0:08 Gamma's Importance for Market Makers
1:02 Gamma: The Indicator of Delta Change
1:34 Gamma as the Gas Pedal
2:04 Gamma and Delta Relationship
2:19 Key Point About Gamma
4:00 Cruise Control: No Gamma Value
4:16 At-the-Money: High Gamma
4:24 Green Light: Anticipating Acceleration

Register to view the complete Greeks Overview: A Fast-Track Guide to the Fundamentals webinar: https://bit.ly/3Q38gBV.