What Is the Practical Implication of High Gamma for a Short-Term Option Holder?

For a long option holder (positive Gamma), high Gamma is generally beneficial, as it means the option's Delta becomes more favorable quickly with price movement. If the underlying moves in the desired direction, the position's Delta rapidly increases (for calls) or decreases (for puts), accelerating profit.

However, for a short option seller (negative Gamma), high Gamma is highly detrimental. It means their Delta exposure worsens rapidly, forcing expensive, frequent re-hedging and magnifying potential losses.