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The gamma of an option is one of the four primary “option greeks.” The other three are delta, theta, and vega.
An option’s gamma is a measure of the option’s change in directional exposure (delta) as the stock price changes.
Long & Short Gamma (Written Guide): https://www.projectfinance.com/long-gamma-short-gamma/
In this video, I explain what an option’s gamma is and give numerous examples to demonstrate the concepts, as well as show how options at various strike prices and days to expiration have different levels of gamma exposure.
Additionally, I discuss more advanced concepts, such as how gamma can be in the context of probabilities.
Be sure to leave a comment down below with any questions you may have!
=== RECOMMENDED VIDEOS/RESOURCES ===
Option Delta Explained: https://youtu.be/gZqzEF-Rlnw
Stock Options Trading 101: https://youtu.be/3bELT5FZCic
Why Early Exercise/Assignment is Rare: https://www.youtube.com/watch?v=7pTb1a5IgKM
Options Trading For Beginners (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o58ldr-5zSn4ROx4SZG7Jyo
tastyworks Tutorials (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o56a2BO3jpK_PBUFe3FdvxP
Option Pricing EXPLAINED: https://youtu.be/-nnJ4pMBaxA
Options Trading 101: https://youtu.be/3bELT5FZCic
