what is gamma 
gamma is an options risk metric that describes the rate of change in an option s delta per one point move in the underlying asset s price delta is how much an option s premium price will change given a one point move in the underlying asset s price therefore gamma is a measure of how the rate of change of an option s price will change with fluctuations in the underlying price the higher the gamma the more volatile the price of the option is gamma is an important measure of the convexity of a derivative s value in relation to the underlying asset it is one of the options greeks along with delta rho theta and vega these are used to assess the different types of risk in options portfolios investopedia laura porterunderstanding gammagamma is the first derivative of delta and is used when trying to gauge the price movement of an option relative to the amount it is in the money or out of the money it describes how the delta will change as the underlying asset changes so if an option s delta is 40 and the gamma is 10 a 1 increase in the underlying price would result in that option s delta becoming 50 