Skip to main content
Learn

What Is the Gamma of a Deep ITM Option?

The Gamma of a deep ITM option is very close to zero because its Delta is already near 1.0 and changes minimally with underlying price moves.
Greeks.Live24.11.25

What Is the Gamma of a Deep ITM Option?

The Gamma of a deep In-the-Money (ITM) option is very close to zero. Gamma measures the rate of change of Delta.

Since a deep ITM option's Delta is already near its maximum of 1.0 (or -1.0) and changes very little with small movements in the underlying price, its Gamma is low. This means the Delta-hedge for a deep ITM option is very stable and requires minimal re-adjustment.

What Is the Term for an Option with a Delta Very Close to 1.0 or -1.0?
Why Do Options Deep OTM/ITM Have Low Gamma Regardless of Implied Volatility?
Does a Deep ITM Option Also Have Gamma near Zero?
How Does Delta Change as an OTM Call Option Moves Deeper OTM?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.