Gamma
An option Greek measuring the rate of change of delta as the underlying asset moves. High gamma means delta can shift quickly.
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The Butterfly Spread
The butterfly is a defined-risk, three-strike strategy that profits when the underlying finishes near a chosen central price. This lesson builds the long call and long put butterfly, shows the tent-shaped payoff, then covers the iron butterfly (its credit-based cousin) and the broken-wing butterfly (a skewed version that can be opened for a credit), with worked numbers and how to practise each in the Options Lab.
Calendar Spreads
A calendar spread sells a near-dated option and buys a longer-dated one at the same strike, profiting from the faster decay of the near leg if price sits near the strike. This lesson builds call and put calendars, explains why they are long time-decay and long volatility, shows the curved payoff at the near expiry, covers the diagonal variation, and shows how to rehearse them in the Options Lab.
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