DiscoverIBKR PodcastsOpposites Attract: the Inverse Relationship Between Implied Volatility and Gamma
Opposites Attract: the Inverse Relationship Between Implied Volatility and Gamma

Opposites Attract: the Inverse Relationship Between Implied Volatility and Gamma

Update: 2025-01-09
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Mat Cashman, Principal of Investor Education at the Options Clearing House, joins IBKR’s Jeff Praissman to discuss the often-misunderstood inverse relationship Gamma and Implied Volatility have.


 


Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.


This material is from The Options Industry Council (OIC) and is being posted with its permission. The views expressed in this material are solely those of the author and/or The Options Industry Council (OIC) and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


Disclosure: Options Trading

Options involve risk and are not suitable for all investors. Multiple leg strategies, including spreads, will incur multiple commission charges. For more information read the "Characteristics and Risks of Standardized Options" also known as the options disclosure document (ODD) or visit ibkr.com/occ

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Opposites Attract: the Inverse Relationship Between Implied Volatility and Gamma

Opposites Attract: the Inverse Relationship Between Implied Volatility and Gamma

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