# Options trading part 3: Gamma/curvature risk

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.**