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Opposites Attract: the Inverse Relationship Between Implied Volatility and Gamma

IBKR Podcasts

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Navigating Options: Delta and Gamma Dynamics

This chapter explores the interplay between gamma, delta, and implied volatility in options trading using relatable metaphors for clarity. It highlights how changes in implied volatility can flatten delta, significantly influencing options pricing, especially during market turbulence like the 2008 financial crisis.

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