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Technical
Gamma
Second derivative of option price to underlying; rate of change of delta
Definition
Gamma measures how quickly delta changes as the underlying asset price moves. High gamma means delta is very sensitive to price changes. Gamma is highest for at-the-money options and decreases as options move in-the-money or out-of-the-money.
Related Topics
#options greeks
#delta sensitivity
#option pricing
#volatility
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Category: Technical
Technical analysis focuses on price patterns, chart analysis, and mathematical indicators to predict future price movements.
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