GAMMA NEUTRAL

Method of managing risk in options trading by forming an asset portfolio with a delta of zero. It hedges against second-order time price sensitivity. One of the options Geeks alongside delta, rho, theta, and vega, these are used to determine several types of risk in options portfolios. The risk level on an options portfolio can also be regulated using delta neutral, theta neutral and vega neutral strategies, which are used to hedge against the perils of price sensitivity, implied volatility, and time sensitivity.