when the option being measured is deep in or out of the money gamma is small when the option is near or at the money gamma is at its largest gamma is also largest for options with near term expirations relative to longer dated options 
gamma is an important metric because it accounts for convexity issues when engaging in options hedging strategies 1 some portfolio managers or traders may be involved with portfolios of such large values that even more precision is needed when engaged in hedging a third order derivative named color can be used color measures the rate of change of gamma and is important for maintaining a gamma hedged portfolio as an analogy to physics the delta of an option is its speed while the gamma of an option is its acceleration 