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 2026-09-08
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.
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…