Which type of option should be avoided when shorting, considering Gamma? Option: "Options with low Gamma", "In-the-money (ITM) options", "Out-of-the-money (OTM) options", "Options with high Gamma"

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

"Options with low Gamma"

"In-the-money (ITM) options"

"Out-of-the-money (OTM) options"

"Options with high Gamma"

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Which of the following is NOT a characteristic of Gamma?

It can translate to large directional risk

It measures the rate of change of delta

It tends to be higher for deep out-of-the-money options

It is always a positive number for both Calls and Puts

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

"When you short Calls and buy Puts"

"When you buy Calls and Puts"

"When you buy Calls and short Puts"

"When you short Calls and Puts"

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How is 'Gamma' related to 'Delta' in options trading?

Gamma is a fixed value, while Delta is variable.

Gamma measures the rate of change of Delta for a given change in the underlying asset's price.

Gamma and Delta are independent of each other.

Gamma represents the inverse of Delta.

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Which of the following statements is true about Gamma?

"Gamma is negative for Calls and positive for Puts"

"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"

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Which type of option tends to have the highest percentage change in premium for a significant move in the underlying asset?

"At-the-money (ATM) options"

"Deep in-the-money (ITM) options"

"Deep out-of-the-money (OTM) options"

"Slightly out-of-the-money (OTM) options"