Video Library

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.

Recommended Videos

Introducing the Greeks: Your Options Dashboard

Introducing the Greeks: Your Options Dashboard

Learn how Delta, Gamma, Theta and Vega each map to a component of a car's dashboard — speed, acceleration, fuel and weather — and why tracking all four is essential to understanding what drives an option's price.

Watch Now
Netting the Greeks

Netting the Greeks

"When we turn a short option into a spread, we are reducing our profits, but we're also reducing our losses." Learn the significance of the Greeks in this hypothetical scenario.

Watch Now
The Effects of the Greeks

The Effects of the Greeks

Explore how changes in Theta and Vega affect this options strategy.

Watch Now
Selling the Greeks

Selling the Greeks

Learn how investors might use the Greeks to understand theoretical changes in option's prices.

Watch Now
Demystifying the Greeks

Demystifying the Greeks

No matter where an investor is on their options journey, having a firm grasp of the Greeks is fundamental.

Watch Now