A Greek that measures the rate of change of an option's delta as the underlying price moves.
Gamma measures how much an option’s delta changes for every ₹1 move in the underlying asset’s price. It is highest for at-the-money options that are close to expiry and lowest for deep in-the-money or out-of-the-money options. Traders who are short options watch gamma closely because a high gamma means the position’s delta, and therefore its risk, can change very quickly as the market moves.
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