Gamma help

Ok, I am long 1660 gamma on three short puts, currently OTM. What does my gamma mean or tell me about this position? (Try to hold back the jokes, guys, ok?)

 

You can’t be long gamma on short puts.

 

Short g.


Even shorting three ATM NDX puts would not result in 1660 gamma.

 

NG and I see no negative symbol after the number.

 

And make that 8 contracts.

 

8 lot apologies

 

An 8 lot would max out your delta at long 800 shares.

That gamma is on roids

 

Deltas are all sub -0.10, gamma now down to about 1200. What’s it all mean in simple English, and not some snippy witticism?

 

The gamma could be measured in dollars.

 

How so? I’ve made 1500 bucks on the 400 or so shrink in gamma today.