Dollar gamma
Definition · Level 5 · Greeks & volatility
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Gamma on a common scale: position gamma × S² ÷ 100 is the change in dollar delta for a 1% move. It lets positions in stocks with different prices be added and compared.
Example
Gamma 500 on a $400 stock: $800,000, against $2,000 on a $20 stock.
Where Tradecraft teaches it
Level 5 · Greeks & volatility, in the lesson “Dollar gamma and beta-weighted delta”: Put every position on one scale before adding: dollars for gamma, index shares for delta.
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