Option Gamma Explained (Option Greeks Tutorial)

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The gamma of an option is one of the four primary "option greeks." The other three are delta, theta, and vega.

An option's gamma is a measure of the option's change in directional exposure (delta) as the stock price changes.

In this video, I explain what an option's gamma is and give numerous examples to demonstrate the concepts, as well as show how options at various strike prices and days to expiration have different levels of gamma exposure.

Additionally, I discuss more advanced concepts, such as how gamma can be in the context of probabilities.

Be sure to leave a comment down below with any questions you may have!

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[PthreeG]

Only reason you don’t have 5 million subs right now is because people don’t normally look into this stuff. Thank you for the service of teaching people possibly life changing information.

[Tapas]

You have good education channel. Subscribers will rise exponentially (gamma on delta!). Theta does not stand a chance here.Good luck!

[samuimuscle]

Another great VDO, thanks for being my coach for my option journey!

[AM-yddt]

Very well explained Chris.... You are a gifted teacher

[rishipatel]

A VERY BIG THANK YOU BRO
CANT GET SUCH CONTENT FOR FREE😍😍

[touchstone]

Smiling your way to be a good teacher 👍😀

[justinhokie]

Just subscribed, going through a ton of your videos! Might have to watch them a couple times to really make sure they sink in. Dipping my toes into covered calls and puts so all this is super helpful!

[mahendrarathore]

Chris, You are the best trainer. Simply outstanding videos.

[riskedcapital]

Awesome, super simple, thanks Chris!

[delicatessen]

Awesome videos, thank you. Why is volatility in a stock price desirable when trading options (through higher prices), but volatility/high fluctuations in Delta not desirable?

[djuffuk]

Thanks so much! save many students in their finals

[gordonraddy]

Could you create a video from A to Z with an actual example kicking off with a screener, followed by swift technical analysis and thus picking stock ABC due to being close to a support and possibly moving in a consolidated manner, followed by picking the your strategy and then also explaining how and why you pick exactly those calls or puts in conjunction with the Greeks? That would be wicked. thanks buddy - greetings from Vietnam.

[AP__]

I'm going to have to watch this 10x over. Thanks for sharing, sure can be confusing.

[bigboy]

Would of made a lot of mistakes without you!!
Big thx bro!

[cmaWhite]

Informative content and you explain it very well!

[jayhindocha]

tum bohot mast kaam karta hai Chris bhai

[bigr]

Is there a way to look up historic Delta and gamma?

[harshpanchal]

should I worry about gamma risk for neutral strategies for the short term(strangles, straddles)?

[magnegronnevik]

If I trade covered call should I still worry about the gamma? I have got my premium and that I cannot loose? If I end up in the money, I normally just take assignement. If deep in the money I roll the call for a small premium.

[Narsty_Boy]

So the gamma is like the volatility of the delta? And the delta is like the volatility of the option? High gamma means more volatile and low gamma means less volatile effects on the delta?