Explaining gamma with a simple simulator
An interactive simulator to understand gamma scalping and delta hedging
Matt Zeigler hosted myself and Mat Cashman to explain gamma. This is the 3rd episode I’ve done in this ELI5 series and I think it’s forced some of the better educational stuff I’ve done because I can’t assume too much knowledge.
These are the slides I used to bridge middle-school math to gamma.
One of the most common questions I get is about how “gamma scalping” actually works.
A few weeks ago I vibe-coded a simulation that I demo’d in the interview.
You can try it yourself. There’s probably no easier way to learn the concept than let this stock tick and then look at the chart/table to witness “scalping”.
