Options Crash Course: The Greeks - July 2, 2021 - Gamma (and Gamma Risk) in Options Explained

published 3 weeks ago by tastytrade, Inc.

Here in episode #4 of the Greeks Crash Course, we take a crack at our first higher-order Greek - Gamma. A second-derivative of the Black-Scholes Model, Gamma shows us how Delta itself will change as the stock price changes. Given this as we see in this episode, at tastytrade we much prefer to use Gamma to control risk rather than maximize return.

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