Skip to main content

Why Is High Gamma Desirable for Option Buyers?

High Gamma is desirable for option buyers because it means their Delta will increase rapidly as the underlying price moves favorably. This positive feedback loop causes the option's price to accelerate in value, maximizing the leverage effect of the option.

Does a Higher Gamma Value Necessitate More Frequent Delta Hedging?
How Does the Time Remaining until Expiration Affect the Option’s Time Value?
How Does ‘Gamma’ Relate to and Affect an Option’s Delta?
Explain Why Theta Accelerates near the Option’s Expiration Date