Why Is a High Gamma Option More Difficult to Delta-Hedge than a Low Gamma Option?

A high Gamma option means its Delta changes rapidly for small movements in the underlying asset's price. This rapid change requires the market maker to execute frequent and significant adjustments to their hedge (buying or selling the underlying).

This dynamic hedging is costly due to transaction fees and slippage, making the overall position more complex and riskier to manage than a low Gamma position.