Gamma is the rate of change for an option’s delta based on a single-point move in the delta’s price. Gamma is at its highest when an option is at the money and is at its lowest when it is further away from the money.

Click the video below to get more detail.

Grab a free day pass to one of our live signal trading rooms today>> http://bit.ly/nlonedaypass

 

 

about the author:

Mike Shorr

Since 1994, Michael has been an on-the-floor market maker, Vice-President of Interest Rate Derivatives for Knight Financial Products and Director of Education and Options Instructor at Trading Advantage. He makes the oftentimes complex world of options and trading accessible to the novice and advanced trader alike. Michael has a Bachelor of Science degree in Statistics and Finance from the University of Illinois Champaign-Urbana. He presently is Director, Trader Education at ProsperTradingAcademy.

Read Similar Articles

June 19, 2026

Are Energy Stocks Flying Under The Radar Right Now?

Oil prices have dropped from triple digits into the $70s, causing many traders to move on from energy stocks. Scott Bauer believes that reaction might be premature. He explained why on TD Active Trader Live. The analysis, insights, and strategies shared by Prosper Trading Academy’s coaches in Prosper Insider are strictly for educational and informational […]

Read Article
June 17, 2026

Two Threats That Could Derail The Market Rally

By most measures, this market should be struggling. Inflation has remained stubborn, rate pressure hasn’t let up, and geopolitical uncertainty still looms in the background. Instead, the indices keep pushing higher. Scott Bauer has a specific view on why that is, and what could take the wind out of its sails. Before today’s Fed announcement, […]

Read Article
https://www.prospertrading.com/ibm-is-pulling-back-scott-bauer-sees-a-setup/IBM Is Pulling Back. Scott Bauer Sees a Setup
June 16, 2026

IBM Is Pulling Back. Scott Bauer Sees a Setup

Want to get more trade ideas like this from Scott? Let’s see if you’re a fit for his program. Fill out this quick application to get started. IBM sold off hard after a massive run. The stock climbed over 50 percent last month, before falling 18 percent so far in June. Scott Bauer doesn’t think […]

Read Article

Read Similar Articles

June 21, 2026

The Week Ahead: We Got Warshed

Equities finished the holiday-shortened week with a more complicated message than the headline indexes suggested. The Dow Jones Industrial Average pushed to new records this week, helped by industrials and financials, while the broader market wrestled with a hawkish Federal Reserve, rising 2-year yields, and an increasingly narrow technology trade. The week’s major geopolitical headline was […]

Read Article
June 14, 2026

The Week Ahead: The Letter K

Major indices changed course in a meaningful way this past week, ending in the green despite significant initial volatility. For the week, the S&P 500, Dow and Nasdaq-100 all gained just under 1%. Headline whiplash about developments in the war between the U.S. and Iran ended with hope that an agreement is in the offing. […]

Read Article
June 13, 2026

The SpaceX IPO just made history. What comes next?

SpaceX (SPCX) closed its first day of trading up 19 percent. The biggest IPO in market history is now public, and traders are already asking the same question: What’s next for SPCX? The hype was real, but Charlie Moon believes the more interesting story is just starting to unfold. He recorded a breakdown, with his […]

Read Article