Definition of Gamma:

  1. The third letter of the Greek alphabet (Γ, γ), transliterated as ‘g.’.

  2. Rate at which the delta of an option changes in response to a change in the price of the underlying asset. Positive gamma indicates positive convexity of the trading position: an up or down move in the price of the underlying asset will give the position a value higher than that predicted by delta.

How to use Gamma in a sentence?

  1. In the Greek alphabet, each letter has a name that is not directly related to its sound value (alpha, beta, gamma, etc.), but this practice is not common in Roman derived alphabets.

Meaning of Gamma & Gamma Definition