Formiga.

Unit 1 · Level 5 · Volatility Mastery

Gamma & vega: the fast greeks

Delta and theta you know. GAMMA: how fast delta itself changes. It runs highest near the strike close to expiry, where options behave explosively. VEGA: sensitivity to implied volatility. Long options gain when IV rises and bleed when it crushes. Four dials, full instrument panel.

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What you get asked

  1. Why do 0-days-to-expiry (0DTE) options move so violently?

    Gamma is the accelerator pedal. 0DTE is maximum acceleration with maximum theta, a knife fight in a phone booth. Know WHY before ever touching them.

  2. Match the greek to its question

    Every options P&L surprise you'll ever have is one of these four dials you weren't watching.

  3. Market-maker ___ hedging (their forced buying and selling as deltas shift) can amplify index moves near big strikes.

    'Gamma squeezes' and pinning at round strikes: dealer flows are the stock market's liquidation cascades. Same physics you learned in perps. Forced flows move prices.

  4. You're long a call and IV drops 10 points while price stays flat. Vega says…

    Every option position is a volatility position. Masters CHOOSE their vega exposure; tourists discover it on settlement.

  5. The greeks, mastered, turn options trading into…

    Instead of one mystery ticket. Boss next, then the market's engine room: microstructure. 🐜

The rest of this unit

Implied volatility, spreads, gamma and vega: the second dimension of every trade.