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The Speed of Delta

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Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Delta represents directional risk. Gamma tells us the magnitude of the delta risk.

Understanding gamma helps us to use delta as a hedging tool.

In this segment, Tom and Tony dive into everything you need to know when it comes to the option greek, Gamma. Tune in as they list how gamma behaves with long and short options and how option prices/gamma is affected as expiration nears.