# Does Gamma Increase or Decrease as an Option Approaches Expiration? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

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## Does Gamma Increase or Decrease as an Option Approaches Expiration?

Gamma generally increases for at-the-money options as expiration approaches. This is because the option's Delta becomes highly sensitive to the underlying price near expiry, causing rapid shifts from 0 to 1 or vice-versa.

For options that are deep in-the-money or far out-of-the-money, Gamma decreases toward zero near expiration.

- [How Does the Increased Gamma near Expiration Affect Hedging Costs?](https://learn.greeks.live/path/how-does-the-increased-gamma-near-expiration-affect-hedging-costs/)

- [What Is the Relationship between the Spot Price and the Futures Price of a Cryptocurrency as the Contract Nears Expiration?](https://learn.greeks.live/path/what-is-the-relationship-between-the-spot-price-and-the-futures-price-of-a-cryptocurrency-as-the-contract-nears-expiration/)

- [How Does Time Decay (Theta) Affect an ITM Option?](https://learn.greeks.live/path/how-does-time-decay-theta-affect-an-itm-option/)

- [Why Is the Increase in Gamma Most Pronounced for ATM Options?](https://learn.greeks.live/path/why-is-the-increase-in-gamma-most-pronounced-for-atm-options/)

- [How Does Theta Impact the Value of an Option as Its Expiration Date Approaches?](https://learn.greeks.live/path/how-does-theta-impact-the-value-of-an-option-as-its-expiration-date-approaches/)

- [Define “Theta Decay” and How It Impacts OTM Options as Expiration Approaches](https://learn.greeks.live/path/define-theta-decay-and-how-it-impacts-otm-options-as-expiration-approaches/)

- [How Does an Option’s Time to Expiration Affect Its Theta Value?](https://learn.greeks.live/path/how-does-an-options-time-to-expiration-affect-its-theta-value/)

- [Why Does Theta Accelerate as an Option Approaches Its Expiration Date?](https://learn.greeks.live/path/why-does-theta-accelerate-as-an-option-approaches-its-expiration-date/)

## Glossar

### [Gamma Increase](https://learn.greeks.live/area/gamma-increase/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Acceleration ⎊ Gamma Increase describes the non-linear acceleration in the rate of change of an option's Delta, typically observed as the option's strike price moves closer to the underlying cryptocurrency's spot price, or as expiration approaches.

## Discover More

### [Why Does an At-the-Money Option Exhibit the Highest Gamma?](https://learn.greeks.live/path/why-does-an-at-the-money-option-exhibit-the-highest-gamma/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Why Does an At-the-Money Option Exhibit the Highest Gamma?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Convergence-Points-Visualizing-Impermanent-Loss-in-Decentralized-Exchange-Liquidity-Pools.webp)

ATM options have maximum uncertainty about their final value, leading to the highest rate of change in Delta (Gamma).

### [How Does a Long Lock-up Period Increase the Risk Profile of a Staked Asset?](https://learn.greeks.live/path/how-does-a-long-lock-up-period-increase-the-risk-profile-of-a-staked-asset/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Long Lock-up Period Increase the Risk Profile of a Staked Asset?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Finance-Asset-Custody-Mechanism-Revealing-Internalized-Derivative-Settlement-Infrastructure.webp)

A long lock-up increases liquidity risk, preventing exit during a price drop and exposing the staker to greater market and regulatory risks.

### [How Does the Lack of a Traditional CCP in Many DeFi Derivatives Protocols Increase Protocol Risk?](https://learn.greeks.live/path/how-does-the-lack-of-a-traditional-ccp-in-many-defi-derivatives-protocols-increase-protocol-risk/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Lack of a Traditional CCP in Many DeFi Derivatives Protocols Increase Protocol Risk?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Depiction-of-Cross-Hedged-Digital-Asset-Volatility-Surface-and-Structured-Products.webp)

Without a CCP, DeFi protocols face higher counterparty risk, relying on less-robust insurance funds to absorb defaults, risking insolvency.

### [Why Does IV Often Decrease Immediately after an Earnings Report?](https://learn.greeks.live/path/why-does-iv-often-decrease-immediately-after-an-earnings-report/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Why Does IV Often Decrease Immediately after an Earnings Report?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Time-Decomposition-Analysis-of-Transparent-Analogue-Watch-Hands-Suggesting-Quantum-Entanglement-Hedging-Strategies.webp)

IV decreases because the uncertainty of the major event has been resolved.

### [Does High Volatility in Cryptocurrency Markets Increase or Decrease the Impact of Theta?](https://learn.greeks.live/path/does-high-volatility-in-cryptocurrency-markets-increase-or-decrease-the-impact-of-theta/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Does High Volatility in Cryptocurrency Markets Increase or Decrease the Impact of Theta?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetric-Delta-Hedging-Position-Cross-Section-Against-Industrial-Infrastructure-Scaffolding.webp)

High implied volatility increases the absolute dollar amount of Theta decay because the option's time value component is larger.

### [How Does Time to Expiration Affect an Option's Vega?](https://learn.greeks.live/path/how-does-time-to-expiration-affect-an-options-vega/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does Time to Expiration Affect an Option's Vega?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Lattice-Bifurcation-in-Decentralized-Finance-Option-Hedging-Mechanisms.webp)

Longer time to expiration results in higher Vega, making long-dated options more sensitive to changes in Implied Volatility.

### [Does Inventory Risk Change Based on the Option's Time to Expiration?](https://learn.greeks.live/path/does-inventory-risk-change-based-on-the-options-time-to-expiration/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Does Inventory Risk Change Based on the Option's Time to Expiration?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Representation-of-High-Frequency-Trading-Execution-Via-Cryptographic-Algorithmic-Hedging-Mechanism.webp)

Yes, longer-dated options have higher Vega (volatility risk), and risk profile changes as Gamma and Theta increase near expiration.

### [Does Concentrated Liquidity Increase or Decrease the Overall Pool's Resistance to Large Trades (Slippage)?](https://learn.greeks.live/path/does-concentrated-liquidity-increase-or-decrease-the-overall-pools-resistance-to-large-trades-slippage/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Does Concentrated Liquidity Increase or Decrease the Overall Pool's Resistance to Large Trades (Slippage)?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetric-Gamma-Exposure-Volatility-Surface-Structure-Modeling-Over-Dark-Pool-Liquidity-Pools.webp)

It decreases slippage within the concentrated range due to deeper reserves, but slippage increases sharply outside that range.

### [Does a High Volatility Environment Increase or Decrease the Time Value of an OTM Option?](https://learn.greeks.live/path/does-a-high-volatility-environment-increase-or-decrease-the-time-value-of-an-otm-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Does a High Volatility Environment Increase or Decrease the Time Value of an OTM Option?](https://learn.greeks.live/wp-content/uploads/2025/10/Cryptographic-Asset-Settlement-Mechanism-Unveiling-Quantum-Resonance-in-Decentralized-Finance-Protocols.webp)

High volatility increases the probability of an ITM move, thus increasing time value.

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