How Can a Trader Use a Gamma Scalping Strategy?

Gamma scalping is a strategy where a trader attempts to profit from an option's high Gamma while maintaining a Delta-neutral position. The trader buys options (long Gamma) and continuously re-hedges the Delta by trading the underlying asset.

When the underlying price moves up, the trader sells the underlying; when it moves down, they buy it. The profit comes from buying low and selling high on the underlying asset, financed by the option's premium.