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Jan Stuller
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Jan Stuller
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I have been keep hearing that gamma is a bet on realized volatility. That is, if we are long gamma then we need higher realized volatility to comingcome in the future in order to make a profit. Otherwise what happens ?

from other source  :

If you are long gamma and delta-neutral, you make money from big moves in the underlying, and lose money if there are only small moves.

I get it that why short gamma hurts, but honestly I dont know why long gamma and delta neutral makes money if realized vol is higher.

Please help me and advance thanks!

I have been keep hearing that gamma is a bet on realized volatility. That is, if we are long gamma then we need higher realized volatility to coming in the future. Otherwise what happens ?

from other source  :

If you are long gamma and delta-neutral, you make money from big moves in the underlying, and lose money if there are only small moves.

I get it that why short gamma hurts, but honestly I dont know why long gamma and delta neutral makes money if realized vol is higher.

Please help me and advance thanks!

I keep hearing that gamma is a bet on realized volatility. That is, if we are long gamma then we need higher realized volatility to come in the future in order to make a profit.

from other source:

If you are long gamma and delta-neutral, you make money from big moves in the underlying, and lose money if there are only small moves.

I get it that why short gamma hurts, but honestly I dont know why long gamma and delta neutral makes money if realized vol is higher.

Please help me and advance thanks!

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