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Joined: July 14th, 2002, 3:00 am

Gamma Hedge

May 18th, 2008, 4:44 am

Been googling a bit for "Gamma hedging" but I seem to fail to find a good "real-world" exampleIf I for instance have a position like this.-Xetra (German stocks)-A mix of call/put options in stocks-Long Delta, 30000-One currency only-Hedge instrument would be the GDAX (index)For delta hedging I would just nomalize the deltas in the stocks to GDAX equivalents and trade GDAX fut/op accordingly, untill my delta reaches an acceptable level. But for Gamma Hedging?