Gamma Explained: Shaping Option Delta

Published: 02 April 2024
on channel: Ryan O'Connell, CFA, FRM
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Join Ryan O'Connell, CFA, FRM, as he demystifies the complex world of options trading with "Gamma Explained: Shaping Option Delta." This comprehensive video breaks down the crucial roles of Gamma and Delta in options pricing, offering clear insights into how these Greeks impact option strategies. From the basics of Delta and Gamma to their intricate relationship and effects on in-the-money versus out-of-the-money options, Ryan provides an in-depth analysis perfect for both novice and experienced traders. Discover how Gamma shapes the Delta of your options and ultimately your trading outcomes in this essential guide to the Option Greeks.

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Chapters:
0:00 - Defining the Option Greeks
0:23 - Delta Definition
0:45 - Option Price Change Based on Delta
1:26 - Gamma Definition
1:48 - Delta Change Based on Gamma
3:18 - Formula For How Gamma Changes Delta
4:02 - In-the-Money Vs Out-of-the-Money Options
4:54 - Delta At Different Levels of Moneyness
8:51 - Gamma At Different Levels of Moneyness
9:59 - Delta & Gamma Over the Life of a Stock

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.


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