# Options trading part 3: Gamma/curvature risk

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**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.**

The “delta” is dynamic. The option’s “delta” might alter over time. The “delta” changes when the underlying/spot changes.

As the underlying moves, the delta moves because of Gamma.

Gamma is the risk of a large move, regardless of direction. Gamma measures how much the delta changes in response to a change in the underlying asset’s price.

Follow this link if you haven’t read part 1 of this article series on options trading.

In part 2 of the options trading article, we covered “delta Δ” and “delta hedging.”

Introduction video:

Therefore, if the underlying (spot) has a large movement, the position whose delta is most sensitive to the underlying security (gamma) will experience the greatest change in value.