\n
Is gamma always positive?<\/h3>\n
For long option positions yes; for short positions, position gamma is negative.<\/p>\n
Why is gamma higher near expiry?<\/h3>\n
Less time to expiry means small underlying moves can quickly push the option ITM or OTM, swinging delta sharply.<\/p>\n
How can I reduce gamma risk?<\/h3>\n
Trade further OTM strikes, longer expiries, or use spread strategies to cap gamma exposure.<\/p>\n
Does gamma matter for buyers?<\/h3>\n
Yes — long options benefit from positive gamma during sharp directional moves.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
Gamma is the second-order Greek that measures how quickly an option’s Delta changes as the underlying moves. It is most important for traders running short-dated, ATM options where a few points of underlying movement can shift the option’s behaviour significantly. Understanding gamma helps Indian options traders manage explosive risk near expiry. Key takeaways: Gamma measures […]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-12199","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"Gamma is the second-order Greek that measures how quickly an option’s Delta changes as the underlying moves. It is most important for traders running short-dated, ATM options where a few points of underlying movement can shift the option’s behaviour significantly. Understanding gamma helps Indian options traders manage explosive risk near expiry. Key takeaways: Gamma measures…","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12199","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12199\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=12199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}