What Is the Difference between “Long Gamma” and “Short Gamma” Positions?

A long Gamma position means the portfolio's Gamma is positive, typically achieved by buying options. The Delta becomes more positive when the underlying price rises and more negative when it falls, benefiting from high volatility.

A short Gamma position means the portfolio's Gamma is negative, typically achieved by selling options. The trader profits from low volatility and time decay (Theta).