what is gamma hedging 
gamma hedging is a trading strategy that tries to maintain a constant delta in an options position often one that is delta neutral as the underlying asset changes price it is used to reduce the risk created when the underlying security makes strong up or down moves particularly during the last days before expiration an option position s gamma is the rate of change in its delta for every 1 point move in the underlying asset s price gamma is an important measure of the convexity of a derivative s value in relation to the underlying asset a delta hedge strategy in comparison only reduces the effect of relatively small underlying price changes on the options price 