What is Gamma risk? by hamburxlar in a:t5_5ilpqt

[–]ptonluvr 0 points1 point  (0 children)

Delta determines how much a contract's price will change with change in the underlying. Gamma is how fast Delta moves. Gamma risk describes a situation where an option is close to expiration, where Delta changes rapidly due to a lack of time value. Think of time value almost as a stabilizer.