Skills Proficiency - Gamma

Password to "Dealer Hedging Dynamics - Gamma (extended) = vs-vip24

SECOND ORDER DERIVATIVES tell us about how FIRST ORDER DERIVATIVES change.

Critically- we want to know how DELTA changes- because it's the *hedging of delta* which impacts the market itself.

Here, GAMMA is king.

GAMMA is the derivative which tells us how DELTA changes when the UNDERLYING changes.

The question: "When the market moves UP, how many futures will dealers have to SELL?" - is answered by GAMMA.

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You'll find some helpful documents in this portion of your product.

The Gamma (extended) PDF is meant to serve as a repository of useful treatments of Gamma and other second order Greeks from a variety of vetted Options texts.

The other readings are popularly circulated within the domain, and I've annotated them with my views wherever appropriate.

Everyone learns differently- my hope is that if my exact approach doesn't speak to you 100%, then you'll find a way to make it all "click" within one of the writing styles or presentation approaches I've curated and saved for you along the way.

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