Option Greek Gamma
Gamma is the second derivative of Price, and the first derivative of Delta.
ABOUT THIS COURSE
Gamma represents the rate of change of Delta, and Delta represents the rate of change of Price. If this sounds confusing, please understand every Options trader has a challenge with Gamma, and it sinks in only over time. Hopefully this class on Gamma will go a long way in helping get a grasp of Gamma.
- Gamma is second derivative of Price - Gamma is the second derivative of price. Put another way, it is the first derivative of Delta. It is the Rate of change of Delta
- Gamma is a hard Greek to understand - Being the second derivative of Price, Gamma is a hard Greek to understand, but this course will break it down in simple terms
- Live Demonstration - Gamma is explained and demonstrated on the Live trading platform. Gamma works the same for both Call and Put Options
- Gamma critical during expiry - Gamma is normally passive when there is more time to expiry. As expiry approaches, Gamma becomes intense and hence the Deltas of Options change very rapidly
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