Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Gamma.

The first derivative of delta that is used to try and gauge the price movement of an option relative to the amount is it in out out of the money (ie, if it is an options contract that only contains extrinsic value).  When the option being measured is deep in or out of the money, gamma is very small.  However, when the option is near or at the money, gamma is at its largest.  All long-position options have a positive gamma, while all short-position options have a negative gamma.