Greeks
Color (Third-Order Greek)
Rate of gamma change over time
What is Color (Third-Order Greek)?
Color (Third-Order Greek) The rate of change of gamma with respect to the passage of time, also known as gamma decay or DgammaDtime. Color tells you how your gamma exposure evolves each day, which is critical for managing dynamic hedging strategies as expiration approaches.
Complete Definition
The rate of change of gamma with respect to the passage of time, also known as gamma decay or DgammaDtime. Color tells you how your gamma exposure evolves each day, which is critical for managing dynamic hedging strategies as expiration approaches.
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