# What is Net Gamma?

**What does Net Gamma mean?**

Net Gamma is the sum of call gamma - sum of put gamma

**Why does Net Gamma matter?**

This allows you to estimate whether a stock has a larger call gamma position (if figure is positive) or put gamma position (if figure is negative).

**How to use Net Gamma?**

A positive gamma position infers lower volatility in the underlying stock. A negative gamma position implies higher volatility in the underlying stock.