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1/ PowerTrade #GreekWeek Day 2 - GAMMA
I’m sure you have heard it mentioned all over twitter, and it might seem a bit confusing, but in this #PowerKnowledge thread we are going to demystify Gamma and explain it in simplest of terms.
Gamma NFT Drop at the end...
I’m sure you have heard it mentioned all over twitter, and it might seem a bit confusing, but in this #PowerKnowledge thread we are going to demystify Gamma and explain it in simplest of terms.
Gamma NFT Drop at the end...
2/ Gamma is the rate of change in Delta. If you don't remember Delta, here is our thread from yesterday explaining it.
TLDR: Delta measures change in the option price for every one dollar move, and gamma measures the change in Delta.
TLDR: Delta measures change in the option price for every one dollar move, and gamma measures the change in Delta.
3/ So Gamma is actually what's called a second order derivative, because it doesn't measure the change in the Options value, it measure the change in the thing that measure the change of the options value ie. Delta.
