When stocks gap or snowball lower, traders often ask: why now? Sometimes, the answer lies in gamma exposure — the way options positioning forces market makers to hedge. Gamma Exposure: The Hidden ...

Gamma hedging is a trading strategy ... as a standard for pricing options. Within this formula are two particular variables that help traders understand the way option prices change in relation to the ...

Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big ...