Gamma hedging

Gamma hedging is the continual adjustment of a delta hedge as the underlying price moves. In aggregate it mechanically dampens or amplifies price moves near option strikes, which is the innocent explanation for most pinning.

manipulation techniques · updated 2026-09-23

Where does gamma hedging come up?

This term is used in the following manipulation techniques, each explained in full on its own page.

• Options expiry pinning — Options expiry pinning is trading to hold a share price at or across an option strike at expiry, exploiting the fact that a few cents of movement decides whether large positions pay out or expire worthless.

Enforcement actions involving these techniques

See also

• Pinning — Pinning is the tendency of a stock to close near a heavily traded option strike at expiry, produced by hedging flows. Ordinary pin…

Terms that refer here

Pinning

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