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Positive Gamma
Positive Gamma means Delta changes in a favorable convex direction as the underlying moves. Long options generally have positive Gamma.
Why it matters to you
For a long call, Delta generally increases as the underlying rises and decreases as it falls. For a long put, Delta becomes more negative as the underlying falls and less negative as it rises. This changing sensitivity is an important part of the convex payoff associated with owning options.
Terms that sit next to this one
Convexity