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Why Is Gamma Highest for ATM Options?

ATM options have the highest Gamma because their Delta changes most rapidly as they move from OTM to ITM or vice-versa.
Greeks.Live24.11.25

Why Is Gamma Highest for ATM Options?

Gamma is highest for At-the-Money (ATM) options because their Delta is most sensitive to changes in the underlying price at this point. An ATM option is at the inflection point where a small move can quickly push its Delta towards 1 (ITM) or 0 (OTM).

This rapid change in Delta means the option's price sensitivity is accelerating fastest, which is the definition of high Gamma.

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