What does Gamma measure in options trading?

"The rate of change of delta" "The sensitivity of the option price to changes in volatility" "The time decay of an option" "The intrinsic value of an option"

Which of the following statements is true about Gamma?

"Gamma is always a negative number for both Calls and Puts" "Gamma is always a positive number for both Calls and Puts" "Gamma is positive for Calls and negative for Puts" "Gamma is negative for Calls and positive for Puts"

What type of risk is associated with a large Gamma?

"Volatility risk" "Time decay risk" "Directional risk" "Liquidity risk"

When are you considered "Long Gamma" in options trading?

"When you short Calls and Puts" "When you buy Calls and Puts" "When you buy Calls and short Puts" "When you short Calls and buy Puts"

Which type of option should be avoided when shorting, considering Gamma?

"Options with low Gamma" "Options with high Gamma" "Out-of-the-money (OTM) options" "In-the-money (ITM) options"

For which type of option does Delta change most rapidly?

"At-the-money (ATM) options" "Out-of-the-money (OTM) options" "In-the-money (ITM) options" "Deep in-the-money (DITM) options"

For which types of options does Delta change slowly?

"At-the-money (ATM) options" "Out-of-the-money (OTM) and In-the-money (ITM) options" "Deep out-of-the-money (DOTM) options" "Leaps options"

What is the key takeaway regarding shorting ATM or ITM options with the hope they expire worthless?

"It is a highly profitable strategy" "It is a low-risk strategy" "It should be avoided" "It is recommended for beginners"

What type of options are generally considered good candidates for short trades, assuming you hold them until expiry?

"At-the-money (ATM) options" "Out-of-the-money (OTM) options" "In-the-money (ITM) options" "Deep in-the-money (DITM) options"