Gamma
Definition
The rate of change in an option’s delta for every $1 move in the underlying asset. Highest for at-the-money options near expiration.
Example
High gamma means delta changes rapidly, increasing risk for market makers. Vega Category: Options / Greeks Definition: Measures an option’s sensitivity to changes in implied volatility. Positive for long options; higher for longer
Frequently Asked Question
What is Gamma in trading?
The rate of change in an option’s delta for every $1 move in the underlying asset. Highest for at-the-money options near expiration.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.