What is Gamma Hedging?
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:
The third letter of the Greek alphabet (Γ, γ) is a transliteration of "G".
Sentences of Gamma
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:
Hedge of plants or pruning
Sentences of Hedging
Outsourced fences and pits
Synonyms of Hedging
blarney, honeyed words, smooth talk, flattery, blandishments