Gamma Hedging

Gamma Hedging,

What is Gamma Hedging?

  1. Range hedging is a hedging strategy used to mitigate the risks that arise or fall in the security created, especially in the last days before maturity.

    • Range hedging is a sophisticated optional strategy used in some cases to reduce risk.
    • Range hedges often try to counter the risk that the option price will change rapidly before maturity.
    • Large and unexpected movements can also be treated with gamma coverage.
    • Gamma coverage is the next line of defense for traders after delta coverage.

Literal Meanings of Gamma Hedging


Meanings of Gamma:
  1. The third letter of the Greek alphabet (Γ, γ) is a transliteration of "G".

Sentences of Gamma
  1. In the Greek alphabet, each letter has a name that is not directly related to its proper value (alpha, beta, gamma, etc.), but is not common in the Roman alphabet.


Meanings of Hedging:
  1. Hedge of plants or pruning

Sentences of Hedging
  1. Outsourced fences and pits

Synonyms of Hedging

blarney, honeyed words, smooth talk, flattery, blandishments