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comment What type of investor is willing to be short gamma?
Thanks for your answer. I think you misunderstand the point when you say: "your comment re gamma increasing regardless of direction only holds for ATM options. For ITM options, being short gamma is being long the underlying. For OTM options, being short gamma is being short the underlying." I mean that when you are short gamma you're exposure to the market (in term of beta) increase regardless of the direction, but I don't mention the gamma variation here. My question is not really about options, but more to get a practical understanding of what is gamma, and who is willing to buy or sell it.