Explain the Difference between “Delta-Neutral” and “Gamma-Neutral” Trading Strategies in Options

A delta-neutral strategy is one where the portfolio's value is insensitive to small movements in the underlying asset's price, as the total delta is zero. A gamma-neutral strategy, on the other hand, is one where the portfolio's delta is insensitive to small movements in the underlying asset's price.

Gamma is the rate of change of delta, so a gamma-neutral position means the delta will not change quickly, making the delta-neutral hedge more stable over time.