What Is the Significance of the “Gamma Scalping” Technique?

Gamma scalping is a technique used by traders with a net long Gamma position to profit from the rapid price fluctuations of the underlying asset. When the price moves, the positive Gamma causes the Delta to change favorably, allowing the trader to buy low and sell high the underlying asset.

The goal is for the scalping profits to exceed the daily negative Theta decay of the long option positions.