--- title: "What is gamma, and what is a \"gamma blast\" | RupeeCase" description: "Gamma is how fast an option's delta changes when the index moves, and it is largest for the strike at the money in the last days before expiry." source_url: "https://www.rupeecase.com/learn/questions/what-is-gamma" --- Gamma of the at the money call rises as expiry nears and is highest at the future Gamma of the at the money NIFTY call on the 10 Jun 2026 chain for the 30 Jun 2026 expiry, per point of the future, drawn against the level of the future with twenty, ten and two days left. Source: NSE end of day data, computed by RupeeCase. As of 10 Jun 2026. Take the at the money call on the 10 Jun 2026 chain for the 30 Jun 2026 expiry. Its delta is about a half, and it moves as the index moves. The rate at which delta changes is gamma. Gamma is largest for the strike nearest the future, and it grows as expiry nears, because a small move then decides whether the option finishes in or out of the money. Gamma is a property of the curve, not a profit. A position that is long gamma gains when the index moves a lot in either direction, and it pays for that through time decay, which is theta. The chart shows gamma for the same at the money call with twenty, ten and two days left. The peak rises as the days run down. The claim the box below checks is the one behind the phrase. Near expiry, a cheap option far from the strike can gain many times its price on one large move. That is true of the payoff. What the phrase leaves out is how rarely the move arrives. The expiry day question shows the 16 Jun 2026 NIFTY chain, where every strike out of the money at the close settled at zero. SEBI's August 2026 study found that 87.7% of individual F&O traders made net losses in FY26, and that options were over nine tenths of individual losses. Gamma explains the shape of the payoff. It does not change those odds. **Before you trade.** Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. [Read the SEBI study](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html) What is gamma, and what is a "gamma blast"?Gamma is how fast an option's delta changes when the index moves, and it is largest for the strike at the money in the last days before expiry. A gamma blast is the name traders give to the sudden jump in a cheap out of the money option near expiry, and that jump is only one outcome among many, most of which end with the option worth nothing. Not shown as a route to gains. The payoff shape is real, but the outcome needed for it is rare, and the common outcome is a loss of the premium. LGo deeper ## Where Learn teaches this. [Go deeperGamma: why it grows so fast near expiry8 min, Intermediate](/learn/path-14/module-14-11-gamma)[Go deeperDelta: speed, hedge ratio and the probability shortcut8 min, Beginner](/learn/path-14/module-14-7-delta)[Try itGreeks calculatorDelta to rho, and vanna to colour in expert mode, from one Black 76 engine.](/learn/tools/greeks-calculator) SSources ## Go to the source. 3 sources, NISM the most cited The publisher of each source listed below. Source: Module undefined source list. 1. [NSE, equity derivatives contract specifications: European exercise, cash settlement and lot sizes](https://www.nseindia.com/static/products-services/equity-derivatives-contract-specifications) NSE 2. [SEBI, Profitability of Individual Traders in the Equity Derivatives Segment, FY25 to FY26 (Aug 2026)](https://www.sebi.gov.in/sebi_data/attachdocs/aug-2026/1787233506209.pdf) SEBI 3. [NISM, Series VIII equity derivatives test objectives](https://www.nism.ac.in/revamp-nism/test-objectives-revised-nism-series-viii-equity-derivatives-certification-examination/) NISM ?Questions people ask ## Related questions. 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