How Does the Distance of an OTM Option from the Current Price Affect Its Gamma?

Gamma measures the rate of change of Delta. Deep OTM options have very low Gamma because a small price change in the underlying asset does not significantly change their Delta (it remains near zero).

Near-the-Money (NTM) OTM options, however, have high Gamma. This means their Delta changes rapidly as the underlying price approaches the strike, quickly moving the option from OTM to ATM.