Where Is Gamma Highest for an Option?
Gamma is highest for an option that is At-The-Money (ATM), meaning the strike price is closest to the underlying asset's price. At this point, the option's Delta is most sensitive to changes in the underlying price, causing the largest change in Delta.
Glossar
Strike Price
Reference ⎊ The Strike Price is the predetermined reference level set at the contract's inception against which the underlying crypto asset's spot price is compared at expiration or exercise.
Gamma
Parameter ⎊ Representing the second derivative of an option's price with respect to the underlying asset price, this Greek measures the rate of change of Delta, indicating how quickly the hedge ratio needs to be adjusted.