# Understanding high gamma strategies in binary options

A weekly binary option, that is purchased on Monday, will have a low theta versus a weekly binary option that is purchased on Thursday. However, because expiration is in 2 minutes and 23 seconds, both the Theta and Gamma will change very quickly with fluctuations in price and time.

The closer the binary gets to expiration, the higher the Theta becomes. Additionally, the Gamma increases substantially. A highly respected trader, trainer, author, and speaker residing in North Carolina. She has over 15 years of experience in trading and in the development of custom indicators. She is a successful author and has published several books on topics like how to use volume analysis, trading binary options and spreads.

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Trading on Nadex involves financial risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results. Nadex contracts are based on underlying asset classes including forex, stock index futures, commodity futures, cryptocurrencies, and economic events. Understanding the concepts of the Greeks can help you understand how an option changes price.

In the Greek alphabet, delta is the fourth letter. In the Greek numerical system, it has a value of four. Delta is how many cents the price of the option will change, for a one-dollar move in the underlying market. Delta is the percent probability, or assumption, of whether or not the traded binary will expire in the money, if bought and held until expiration.

Then it is an example of the bid and offer taking over. However, there is no direct delta on a binary option. Why is there no delta on a binary? This is because a binary is a delta of a call option, at the same strike and same expiration.

A binary option is simply the delta of an underlying market. Since the binary is the delta of a call option, they can be considered one and the same. You are in essence trading delta, trading a Greek, when trading binaries. However, you do have Gamma when trading binary options. Gamma is the delta of a delta. Since a binary option is in essence the delta of a call option, the Gamma is the delta of the binary. Gamma is how much the delta will change after each one-point move in the underlying market.

For example, if Delta is. Returning to the original example of Delta being.