Options trading part 3: Gamma/curvature risk

Romano RNR
16 min readMay 31, 2022

Gamma, often known as the option’s “curvature risk,” is our second risk consideration for trading options and delta hedging with options trading.

Gamma Γ” is the change in “delta” of an option contract for every dollar change in the underlying (i.e., spot). Gamma is the sensitivity of “delta Δ” relative to a change in the underlying.

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Romano RNR

Derivatives trading, investing, cryptocurrency, stocks, forex, options & volatility - programmer & sysadmin